Acuere Consultancy

Cash Flow Statement (Indirect Method)

Built from TB: PAT + non-cash add-backs ± working-capital changes. Reconciles to opening + closing bank balance.

vs: nothing prior period last year

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Fiscal year

Full FY YTD H1 H2 Q1 Q2 Q3 Q4

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Custom date range

Method: Direct Method Indirect Method View: Client Consultant

Starts from PAT; non-cash add-backs + ΔWC Download PDF

Consultant view — includes per-ledger inflows/outflows, voucher counts, skipped journals, per-ledger variance, and cross-checks.

Net Cash Flow · May 2024

            −₹41,452
          

The business burned ₹41,452 of cash this period — bank + petty cash shrank by this amount.

Opening

₹107,229

Closing

₹65,777

Cash Reconciliation

Opening + Net CF = Closing · the identity that proves every ₹ is accounted for

Opening Balance

₹107,229

at period start

+

Net Cash Flow

−₹41,452

from this CFS

=

Expected Closing

₹65,777

per the equation

Actual: ₹65,777

Reconciles · ₹0 variance

Indirect Cash Flow Statement

Full line-by-line build from PAT — including per-ledger detail for every working-capital and non-cash adjustment

Starts from PAT (from the P&L). Non-cash items are added back. WC deltas are computed from opening vs closing balances in the TB. Tax & interest paid come from the Payments Register (voucher-level).

Profit After Tax (PAT)	₹2,114.96
= Operating profit before WC changes	₹2,114.96
−(Increase) / Decrease in Trade Receivables Δ (TB opening→closing) = 36,800.00 across 1 ledger(s). Non-cash components excluded from working capital to avoid double counting (e.g. bad-debt write-offs reduce Debtors without affecting cash) Ledgers: Sundry Debtors	−₹36,800.00
＋Increase / (Decrease) in Trade Payables Δ (TB opening→closing) = 8,733.04 across 3 ledger(s) Ledgers: Provisions, Partner Reimbursement (Prateek), Partner Reimbursement (Rahul)	₹8,733.04
−(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) Δ = 9,000.00 across 2 ledger(s) Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24	−₹9,000.00
＋Increase / (Decrease) in Duties & Taxes (aggregate) Δ = 13,500.00 across 1 ledger(s) Ledgers: Duties & Taxes	₹13,500.00
= Cash generated from operations	−₹21,452.00
Net Cash from Operating Activities	−₹21,452.00
Net Cash from Investing Activities	₹0.00
−Drawings / Capital withdrawn — Rahul Nathani Cr movement − Dr movement = -20,000.00 Ledgers: Rahul Nathani	−₹20,000.00
＋(No PAT adjustment — profit not yet appropriated) PAT of ₹2,114.96 is NOT reflected in any equity ledger Δ (P&L A/c / Reserves Δ ≈ 0 and partner capital net Δ is pure drawings). ΔEquity already equals −Drawings, so no PAT subtraction needed. If your firm DOES appropriate profit at year-end, post a journal: Dr P&L A/c, Cr Partner Capital — then re-run this report.	₹0.00
Net Cash from Financing Activities	−₹20,000.00
Net Increase / (Decrease) in Cash	−₹41,452.00

Direct ↔ Indirect reconciliation

Section-by-section — voucher-sourced Direct vs TB-Δ Indirect. Large variance ⇒ specific mapping/tagging gap

Section	Direct (voucher)	Indirect (TB Δ)	Variance	Likely cause if variance ≠ 0
Operating net	-21,452.00	-21,452.00	-0.00	— reconciles cleanly
Investing net	0.00	-0.00	0.00	— reconciles cleanly
Financing net	-20,000.00	-20,000.00	0.00	— reconciles cleanly
Net Cash Flow (all sections)	-41,452.00	-41,452.00	-0.00
TB Bank/Cash period movement (ground truth)	-41,452.00

Financing drill-down

Partner / Capital outflow (Direct — from payment vouchers)	20,000.00
Partner / Capital inflow (Direct — contributions)	0.00
Direct net (Capital contributions − Drawings)	-20,000.00
Loan taken (Direct)	0.00
Loan repaid (Direct)	0.00
Direct net (Borrowings)	0.00

Operating reconciliation — line-by-line variance: 0 (Indirect too high)

(Indirect build vs Direct voucher breakdown) If Indirect Operating ≠ Direct Operating, the gap lives in exactly one (or two) of the lines below.

Indirect Operating build	Amount
Profit After Tax (PAT)	2,114.96
= Operating profit before WC changes	2,114.96
(Increase) / Decrease in Trade Receivables Δ (TB opening→closing) = 36,800.00 across 1 ledger(s). Non-cash components excluded from working capital to avoid double counting (e.g. bad-debt write-offs reduce Debtors without affecting cash) Ledgers: Sundry Debtors	-36,800.00
Increase / (Decrease) in Trade Payables Δ (TB opening→closing) = 8,733.04 across 3 ledger(s) Ledgers: Provisions, Partner Reimbursement (Prateek), Partner Reimbursement (Rahul)	8,733.04
(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) Δ = 9,000.00 across 2 ledger(s) Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24	-9,000.00
Increase / (Decrease) in Duties & Taxes (aggregate) Δ = 13,500.00 across 1 ledger(s) Ledgers: Duties & Taxes	13,500.00
= Cash generated from operations	-21,452.00
Net Cash from Operating Activities	-21,452.00

Direct Operating (from vouchers)	Amount
Inflows
Trade Receivables 3 ledger(s): Ekadrisht Capital Private Limited, GA Design, S S M G & ASSOCIATES LLP	72,200.00
Outflows
Travel & Field 2 ledger(s): Business Meeting Expenses, Travelling Expense	−40,939.68
Office & Admin 3 ledger(s): Office Expenses, Telephone Expenses, Website and Email (Subscription)	−37,966.01
Employee Cost 1 ledger(s): Staff Welfare Expenses	−7,969.35
GST Payable 2 ledger(s): CGST, SGST	−4,500.00
office & Admin 1 ledger(s): PTEC for Partners	−2,276.96
Direct Operating Net	-21,452.00

How to use this: scan for the component on the Indirect side whose sign/magnitude doesn't match a corresponding category on the Direct side. Common suspects: (a) a "Provisions / Bad Debts / Write-offs" add-back that's larger than expected — means an expense got tagged non-cash that actually hit the bank; (b) a WC line whose Δ is big but the matching Direct category is small (mis-tagged wc_component); (c) "Income Tax paid" line smaller than the Direct "Tax Paid" category — means some tax payments used ledger names the Indirect regex doesn't catch (e.g. "TCS", "Professional Tax").

Per-ledger Operating variance 18 ledgers · every rupee traced

Sum of the Δ column equals the Operating variance between methods. Rows with Δ > 0 = Indirect over-counts; Δ < 0 = Indirect under-counts. Sort: biggest absolute variance first.

Ledger	Nature	Category	Indirect Op	Direct Op	Δ (Ind − Dir)	Indirect classification rule applied
Professional Fees	income	Revenue	100,000.00	0.00	100,000.00	income (+Cr−Dr = 100,000.00−0.00)
Sundry Debtors	asset	Trade Receivables	-36,800.00	0.00	-36,800.00	asset Receivable — −(Dr−Cr) = −(118,000.00−81,200.00)
S S M G & ASSOCIATES LLP	—	—	0.00	29,000.00	-29,000.00	(ledger seen only in Direct)
GA Design	—	—	0.00	27,000.00	-27,000.00	(ledger seen only in Direct)
Ekadrisht Capital Private Limited	—	—	0.00	16,200.00	-16,200.00	(ledger seen only in Direct)
Duties & Taxes	liability	Duties & Taxes	13,500.00	0.00	13,500.00	liability nan — +(Cr−Dr) = +(18,000.00−4,500.00)
TDS Receivable 24-25	asset	TDS Receivable	-9,000.00	0.00	-9,000.00	asset nan — −(Dr−Cr) = −(9,000.00−0.00)
Partner Reimbursement (Rahul)	liability	Partner Reimbursement	7,048.00	0.00	7,048.00	liability Payable — +(Cr−Dr) = +(46,200.00−39,152.00)
Travelling Expense	expense	Travel & Field	-37,450.00	-34,108.81	-3,341.19	expense (−(Dr−Cr) = −(37,450.00−0.00))
Office Expenses	expense	Office & Admin	-32,500.00	-29,600.44	-2,899.56	expense (−(Dr−Cr) = −(32,500.00−0.00))
CGST	—	—	0.00	-2,250.00	2,250.00	(ledger seen only in Direct)
SGST	—	—	0.00	-2,250.00	2,250.00	(ledger seen only in Direct)
Partner Reimbursement (Prateek)	liability	Partner Reimbursement	1,685.04	0.00	1,685.04	liability Payable — +(Cr−Dr) = +(51,685.04−50,000.00)
Staff Welfare Expenses	expense	Employee Cost	-8,750.00	-7,969.35	-780.65	expense (−(Dr−Cr) = −(8,750.00−0.00))
Telephone Expenses	expense	Office & Admin	-7,500.00	-6,830.87	-669.13	expense (−(Dr−Cr) = −(7,500.00−0.00))
Business Meeting Expenses	expense	Travel & Field	-7,500.00	-6,830.87	-669.13	expense (−(Dr−Cr) = −(7,500.00−0.00))
PTEC for Partners	expense	office & Admin	-2,500.00	-2,276.96	-223.04	expense (−(Dr−Cr) = −(2,500.00−0.00))
Website and Email (Subscription)	expense	Office & Admin	-1,685.04	-1,534.71	-150.33	expense (−(Dr−Cr) = −(1,685.04−0.00))
Totals			-21,452.00	-21,452.00	0.00
Engine's Indirect Op (from `indirect_operating_net`)			-21,452.00	-21,452.00	0.00	Must match the Totals row above (within paisa of rounding). Any mismatch ⇒ attribution rule bug.

How to read this: each ledger contributes a specific amount to Indirect Operating (per accrual rules: income ⇒ +Cr−Dr, expense ⇒ −(Dr−Cr), asset WC ⇒ −(Dr−Cr), liability WC ⇒ +(Cr−Dr)). Direct attributes cash flow per actual voucher processing. Where the two diverge by a non-trivial amount, it's a specific mapping / classification / treatment issue on that ledger — not "rounding". Click a row's ledger name in a future version to see every voucher that touched it.

Equity ledgers pulled into Indirect engine 4 ledger(s) · debug Financing variance

Everything here contributes to raw_eq_delta; PAT is subtracted at end. If your P&L A/c or Reserves ledger is missing from this list, that's why Financing variance = PAT — my mask didn't catch it.

Ledger	Nature tag	Category	Δ (Cr − Dr)	Included because
Prateek Agrawal	equity	Partner's Capital	0.00	nature=equity
Rahul Nathani	equity	Partner's Capital	-20,000.00	nature=equity
Sakshi Nathani Partner A/c	equity	Partner's Capital	0.00	nature=equity
Profit & Loss A/c	equity	Retained Earnings	0.00	nature=equity + name matches P&L/Reserves pattern + category='Retained Earnings' matches
raw_eq_delta (sum of above)			-20,000.00

PAT adjustment decision: PAT not posted to any equity ledger (P&L Δ = 0.00, partner net Δ = -20,000.00 is pure drawings). PAT still sits unposted in Income−Expense, so ΔEquity already equals −Drawings and no PAT subtraction is needed.

If Direct's partner-drawings figure ≠ Indirect's equity Δ (after PAT adjustment), that's a mapping/tagging problem. The Direct figure comes from actual Dr <Partner> / Cr Bank voucher lines — this is ground truth. If Indirect says something different, investigate the partner-ledger TB classification or PAT value.