Accounting mini case study - Help for an ewok

Any help please?

The easiest way to think about it, is to think of your company like a C corporation, that on an earnings retaining point of view (reinvesting) has the best structure. Before paying a dividend the board (in this case you and your friends) have to take a vote, if the majority approves you all receive the amount decided, if not ALL the profits are reinvested. Now if this friend really doesn't want to reinvest, you could start thinking to the long run and perhaps using your dividend to buy him out, but no other way should be contemplated at this point. You should always set this clear when making even the smallest investment with somebody else, who knows that from a 1000$ you'll reach 1B someday. You don't wanna end up like Mark Zuckenberg and Edoardo Severin, do you?

EDIT:

Just saw you also wanted accounting tips, the best I can suggest right now is to keep all the purchases and sales organised and on date, so you can always take care of the inventory;

Jedi Masters: this is extremely helpful, thanks a LOT.

@Make It Rain, I have been keeping track of every purchases/sales since the beginning with as much details as possible. Thanks for the advice on dividend policy. Greg Marmalard , I will start working with the statements structure you suggested. To be honest we started with a very basic plan: Step 1: we join forces, we buy stuff, we sell it with a profit, and we split the profit according to our initial risk exposure Step 2: repeat step 1. So until recently we did not consider the company as a separate entity and did not think in terms of monthly exercices. We told ourselves that any partner could withdraw a part of his non-invested share of the company at any given time, thus reducing his share of the company. I thought there was a way to have the shareholding structure change in real time, after each transaction. To be honest, I still don't see completely the limits of that reasoning other than the fact that it's difficult (for me) to build on Excel...

Am I wrong because you HAVE to consider things on a monthly basis, i.e. take decisions on the shareholding structure (reinvestment of profit, money withdrawal from a partner, etc.) only at the beginning/end of the month?

I'm probably trying to reinvent the wheel here, sorry if it seems like you're talking to a Neanderthal.

And THANKS again to both of you for your help.

PS: @Make It Rain, I just saw that Saverin is worth c. $8bn. If an argument with my business partners leads me to that....where do I sign?! ;)

If one of us needs money from the company before the end of the month, is it possible to consider this as a loan from the company to the partner? How would this reflect in the statements?