Cash Flow Statement (Direct Method)

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(inferred CAPEX from TB Δ — shows CAPEX bought on vendor credit)

Direct CF classifies vendor payments as Operating (AS-3 convention). When a fixed asset is bought on credit — Dr Computer 78,000 / Cr Vishal Peripherals 78,000 — no cash moves in that entry; the cash later leaves via a vendor payment which falls into Operating, not Investing. This panel surfaces the CAPEX magnitude from your TB (Closing − Opening on Non-Current Assets) so it's visible. For a "pure" Investing CAPEX line in Direct CF, either (a) tag the relevant vendor ledgers with cf_bucket = Investing in Mapping Review, or (b) use the Indirect Method (see toggle above).

(trace — so you can trust the numbers)

Algorithm: For each payment voucher, cash out = |bank leg|, allocated across non-bank Dr lines proportionally. For receipts, cash in = |bank leg| across non-bank Cr lines. Non-bank Cr in payments (TDS Payable accrual, discount received) and non-bank Dr in receipts (TDS Receivable, discount given) are non-cash offsets and ignored — they don't represent cash movement. Journals are processed line-by-line by each ledger's own nature — so a journal like Dr Laptop / Cr Partner Capital lands as Investing outflow + Financing inflow (reimbursement for partner's capex), and Dr Office Rent / Cr Partner Capital lands as Operating outflow + Financing inflow (opex reimbursement).

(no bank/cash leg and no capital leg — pure accounting adjustments)

A journal voucher only contributes to Direct Cash Flow if it has a bank/cash leg (real cash moved) OR a capital/drawings leg (partner paid personally for firm expense — cash moved out of partner's pocket, represented via capital). Everything else is a book entry with no cash event — e.g. bad-debt writeoffs, contra adjustments between debtor & vendor, credit purchases, accruals, GST setoffs, forex revaluation.

(book entries — never cash flow)

TDS Receivable, Depreciation, Provisions, Bad Debts, Write-offs — accounting reclassifications, not cash events. Excluded from Direct CF; surfaced as add-backs in the Indirect method.