Personal Business and Income/Profit/Investment

[Jhonnatan Perkins]

Hello all.

I am going to make an example, you guys please follow along and tell me if
there are any flaws on it.

Let's say you plan to buy a Plasma TV for cheap from China directly from the
manufacturer. Then you plan to make a capital gain from it. Let's suppose it
was a business you are making and there are tons of TVs from China, and you
keep a book for your company (we won't talk about it now). But also, since
you intend to use the profits for buying yourself a ticket to... Spain? Then
somehow you'll mix your personal book with your company's book.

So this example is from the personal perspective (aka NOT your company's
book).

*So you invest the money in your company
Assets->Current Assets->Cash In Wallet->(-)$1,000
Assets->Investments->Your Company->(+)$1,000

*Now you sell the TV and get a profit (you sold it for $1,200).
--Something happens in your company's book, not shown here and not of
interest.--

*So you get profits out of your investment
Assets->Current Assets->Cash In Wallet->(+)$1,000
Assets->Investments->Your Company->(-)$1,000

Income->Profits->Your Company->(+)$200
Assets->Current Assets->Cash In Wallet->(+)$200

Now Cash in Wallet has $1200, which means you covered your investment and
gained a profit. Now your investment stays at cero (0).
Now you can make a Expense or do something with that money.

Are there flaws in this scenario?

Thanks so much for your time fellas...