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 · January 2025

            ₹19,560
          

The business generated ₹19,560 of cash this period — bank + petty cash grew by this amount.

Opening

₹242,690

Closing

₹262,250

Cash Reconciliation

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

Opening Balance

₹242,690

at period start

+

Net Cash Flow

₹19,560

from this CFS

=

Expected Closing

₹262,250

per the equation

Actual: ₹262,250

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)	₹115,550.00
= Operating profit before WC changes	₹115,550.00
−(Increase) / Decrease in Trade Receivables Δ (TB opening→closing) = 29,000.00 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	−₹29,000.00
−Increase / (Decrease) in Trade Payables Δ (TB opening→closing) = -22,734.22 across 2 ledger(s) Ledgers: Provisions, Partner Reimbursement (Rahul)	−₹22,734.22
−(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) Δ = 2,500.00 across 2 ledger(s) Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24	−₹2,500.00
−Increase / (Decrease) in Duties & Taxes (aggregate) Δ = -8,940.00 across 1 ledger(s) Ledgers: Duties & Taxes	−₹8,940.00
= Cash generated from operations	₹52,375.78
Net Cash from Operating Activities	₹52,375.78
Net Cash from Investing Activities	₹0.00
−Drawings / Capital withdrawn — Rahul Nathani Cr movement − Dr movement = -32,815.78 Ledgers: Rahul Nathani	−₹32,815.78
＋(No PAT adjustment — profit not yet appropriated) PAT of ₹115,550.00 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	−₹32,815.78
Net Increase / (Decrease) in Cash	₹19,560.00

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	52,375.78	52,375.78	0.00	— reconciles cleanly
Investing net	0.00	-0.00	0.00	— reconciles cleanly
Financing net	-32,815.78	-32,815.78	0.00	— reconciles cleanly
Net Cash Flow (all sections)	19,560.00	19,560.00	0.00
TB Bank/Cash period movement (ground truth)	19,560.00

Financing drill-down

Partner / Capital outflow (Direct — from payment vouchers)	32,815.78
Partner / Capital inflow (Direct — contributions)	0.00
Direct net (Capital contributions − Drawings)	-32,815.78
Loan taken (Direct)	0.00
Loan repaid (Direct)	0.00
Direct net (Borrowings)	0.00

Operating reconciliation — line-by-line variance: 0 (reconciled)

(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)	115,550.00
= Operating profit before WC changes	115,550.00
(Increase) / Decrease in Trade Receivables Δ (TB opening→closing) = 29,000.00 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	-29,000.00
Increase / (Decrease) in Trade Payables Δ (TB opening→closing) = -22,734.22 across 2 ledger(s) Ledgers: Provisions, Partner Reimbursement (Rahul)	-22,734.22
(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax) Δ = 2,500.00 across 2 ledger(s) Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24	-2,500.00
Increase / (Decrease) in Duties & Taxes (aggregate) Δ = -8,940.00 across 1 ledger(s) Ledgers: Duties & Taxes	-8,940.00
= Cash generated from operations	52,375.78
Net Cash from Operating Activities	52,375.78

Direct Operating (from vouchers)	Amount
Inflows
Trade Receivables 3 ledger(s): GA Design, MELTING POT FOOD PRODUCTS PRIVATE LIMITED, Shreearth Financial (Debtor)	163,200.00
Outflows
GST Payable 2 ledger(s): CGST, SGST	−38,640.00
Travel & Field 2 ledger(s): Business Meeting Expenses, Travelling Expense	−33,501.07
Employee Cost 1 ledger(s): Staff Welfare Expenses	−21,166.25
Office & Admin 2 ledger(s): Office Expenses, Telephone Expenses	−17,516.90
Direct Operating Net	52,375.78

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 15 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	165,000.00	0.00	165,000.00	income (+Cr−Dr = 165,000.00−0.00)
Shreearth Financial (Debtor)	—	—	0.00	106,200.00	-106,200.00	(ledger seen only in Direct)
MELTING POT FOOD PRODUCTS PRIVATE LIMITED	—	—	0.00	30,000.00	-30,000.00	(ledger seen only in Direct)
Sundry Debtors	asset	Trade Receivables	-29,000.00	0.00	-29,000.00	asset Receivable — −(Dr−Cr) = −(194,700.00−165,700.00)
GA Design	—	—	0.00	27,000.00	-27,000.00	(ledger seen only in Direct)
Partner Reimbursement (Rahul)	liability	Partner Reimbursement	-22,734.22	0.00	-22,734.22	liability Payable — +(Cr−Dr) = +(49,450.00−72,184.22)
CGST	—	—	0.00	-19,320.00	19,320.00	(ledger seen only in Direct)
SGST	—	—	0.00	-19,320.00	19,320.00	(ledger seen only in Direct)
Duties & Taxes	liability	Duties & Taxes	-8,940.00	0.00	-8,940.00	liability nan — +(Cr−Dr) = +(29,700.00−38,640.00)
Travelling Expense	expense	Travel & Field	-15,450.00	-22,553.01	7,103.01	expense (−(Dr−Cr) = −(15,450.00−0.00))
Staff Welfare Expenses	expense	Employee Cost	-14,500.00	-21,166.25	6,666.25	expense (−(Dr−Cr) = −(14,500.00−0.00))
Office Expenses	expense	Office & Admin	-9,500.00	-13,867.54	4,367.54	expense (−(Dr−Cr) = −(9,500.00−0.00))
Business Meeting Expenses	expense	Travel & Field	-7,500.00	-10,948.06	3,448.06	expense (−(Dr−Cr) = −(7,500.00−0.00))
TDS Receivable 24-25	asset	TDS Receivable	-2,500.00	0.00	-2,500.00	asset nan — −(Dr−Cr) = −(2,500.00−0.00)
Telephone Expenses	expense	Office & Admin	-2,500.00	-3,649.35	1,149.35	expense (−(Dr−Cr) = −(2,500.00−0.00))
Totals			52,375.78	52,375.78	0.00
Engine's Indirect Op (from `indirect_operating_net`)			52,375.78	52,375.78	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	-32,815.78	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)			-32,815.78

PAT adjustment decision: PAT not posted to any equity ledger (P&L Δ = 0.00, partner net Δ = -32,815.78 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.