Cash Flow Statement (Indirect Method)
Built from TB: PAT + non-cash add-backs ± working-capital changes. Reconciles to opening + closing bank balance.
February 2025
Consultant view — includes per-ledger inflows/outflows, voucher counts, skipped journals, per-ledger variance, and cross-checks.
The business burned ₹41,210 of cash this period — bank + petty cash shrank by this amount.
Cash Reconciliation
Opening + Net CF = Closing · the identity that proves every ₹ is accounted for
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) | −₹9,890.01 |
| = Operating profit before WC changes | −₹9,890.01 |
|
＋(Increase) / Decrease in Trade Receivables
Δ (TB opening→closing) = -52,600.00 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
|
₹52,600.00 |
|
＋Increase / (Decrease) in Trade Payables
Δ (TB opening→closing) = 44,239.21 across 3 ledger(s)
Ledgers: Provisions, Sundry Creditors, Partner Reimbursement (Rahul)
|
₹44,239.21 |
|
−(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax)
Δ = 7,500.00 across 2 ledger(s)
Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24
|
−₹7,500.00 |
|
−Increase / (Decrease) in Duties & Taxes (aggregate)
Δ = -32,735.47 across 1 ledger(s)
Ledgers: Duties & Taxes
|
−₹32,735.47 |
| = Cash generated from operations | ₹46,713.73 |
| Net Cash from Operating Activities | ₹46,713.73 |
|
−(Purchase) of Fixed Assets
Δ Non-Current Assets (net TB) = 54,923.73
Ledgers: Mobile Phone
|
−₹54,923.73 |
| Net Cash from Investing Activities | −₹54,923.73 |
|
−Drawings / Capital withdrawn — Rahul Nathani
Cr movement − Dr movement = -33,000.00
Ledgers: Rahul Nathani
|
−₹33,000.00 |
|
＋(No PAT adjustment — profit not yet appropriated)
PAT of ₹-9,890.01 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 | −₹33,000.00 |
| Net Increase / (Decrease) in Cash | −₹41,210.00 |
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 | 46,713.73 | 46,713.73 | 0.00 | — reconciles cleanly |
| Investing net | -54,923.73 | -54,923.73 | 0.00 | — reconciles cleanly |
| Financing net | -33,000.00 | -33,000.00 | 0.00 | — reconciles cleanly |
| Net Cash Flow (all sections) | -41,210.00 | -41,210.00 | 0.00 | |
| TB Bank/Cash period movement (ground truth) | -41,210.00 | |||
Financing drill-down
| Partner / Capital outflow (Direct — from payment vouchers) | 39,000.00 |
| Partner / Capital inflow (Direct — contributions) | 6,000.00 |
| Direct net (Capital contributions − Drawings) | -33,000.00 |
| Loan taken (Direct) | 0.00 |
| Loan repaid (Direct) | 0.00 |
| Direct net (Borrowings) | 0.00 |
Operating reconciliation — line-by-line variance: -0 (Indirect too low)
(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) | -9,890.01 |
| = Operating profit before WC changes | -9,890.01 |
|
(Increase) / Decrease in Trade Receivables
Δ (TB opening→closing) = -52,600.00 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
|
52,600.00 |
|
Increase / (Decrease) in Trade Payables
Δ (TB opening→closing) = 44,239.21 across 3 ledger(s)
Ledgers: Provisions, Sundry Creditors, Partner Reimbursement (Rahul)
|
44,239.21 |
|
(Increase) / Decrease in Tax Prepayments (TDS Recv / Advance Tax)
Δ = 7,500.00 across 2 ledger(s)
Ledgers: TDS Receivable 24-25, TDS Reveivable 23-24
|
-7,500.00 |
|
Increase / (Decrease) in Duties & Taxes (aggregate)
Δ = -32,735.47 across 1 ledger(s)
Ledgers: Duties & Taxes
|
-32,735.47 |
| = Cash generated from operations | 46,713.73 |
| Net Cash from Operating Activities | 46,713.73 |
| Direct Operating (from vouchers) | Amount |
|---|---|
| Inflows | |
|
Trade Receivables
3 ledger(s): GA Design, MELTING POT FOOD PRODUCTS PRIVATE LIMITED, NK SARRAF & ASSOCIATES
|
92,300.00 |
|
Less: CAPEX paid via vendors (reclassified to Investing)
1 ledger(s): Mobile Phone
|
54,923.73 |
| Outflows | |
|
Operating Expense
2 ledger(s): BNI India Enterprises Private Limited, Unicorn Infosolutions Private Limited
|
−65,083.40 |
|
GST Payable
3 ledger(s): CGST, IGST, SGST
|
−29,700.00 |
|
Travel & Field
2 ledger(s): Business Meeting Expenses, Travelling Expense
|
−2,561.74 |
|
Employee Cost
1 ledger(s): Staff Welfare Expenses
|
−1,731.72 |
|
Office & Admin
2 ledger(s): Office Expenses, Telephone Expenses
|
−1,433.14 |
| Direct Operating Net | 46,713.73 |
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 20 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 |
|---|---|---|---|---|---|---|
| Unicorn Infosolutions Private Limited | — | — | 0.00 | -64,810.00 | 64,810.00 | (ledger seen only in Direct) |
| Mobile Phone | asset | Fixed Assets | 0.00 | 54,923.73 | -54,923.73 | asset Non-Current (Investing, not Operating) |
| NK SARRAF & ASSOCIATES | — | — | 0.00 | 54,000.00 | -54,000.00 | (ledger seen only in Direct) |
| Sundry Debtors | asset | Trade Receivables | 52,600.00 | 0.00 | 52,600.00 | asset Receivable — −(Dr−Cr) = −(47,200.00−99,800.00) |
| Partner Reimbursement (Rahul) | liability | Partner Reimbursement | 44,239.21 | 0.00 | 44,239.21 | liability Payable — +(Cr−Dr) = +(50,239.21−6,000.00) |
| Professional Fees | income | Revenue | 40,000.00 | 0.00 | 40,000.00 | income (+Cr−Dr = 40,000.00−0.00) |
| Duties & Taxes | liability | Duties & Taxes | -32,735.47 | 0.00 | -32,735.47 | liability nan — +(Cr−Dr) = +(7,200.00−39,935.47) |
| GA Design | — | — | 0.00 | 27,000.00 | -27,000.00 | (ledger seen only in Direct) |
| IGST | — | — | 0.00 | -25,200.00 | 25,200.00 | (ledger seen only in Direct) |
| Travelling Expense | expense | Travel & Field | -15,450.00 | -1,845.17 | -13,604.83 | expense (−(Dr−Cr) = −(15,450.00−0.00)) |
| Staff Welfare Expenses | expense | Employee Cost | -14,500.00 | -1,731.72 | -12,768.28 | expense (−(Dr−Cr) = −(14,500.00−0.00)) |
| MELTING POT FOOD PRODUCTS PRIVATE LIMITED | — | — | 0.00 | 11,300.00 | -11,300.00 | (ledger seen only in Direct) |
| Office Expenses | expense | Office & Admin | -9,500.00 | -1,134.57 | -8,365.43 | expense (−(Dr−Cr) = −(9,500.00−0.00)) |
| TDS Receivable 24-25 | asset | TDS Receivable | -7,500.00 | 0.00 | -7,500.00 | asset nan — −(Dr−Cr) = −(7,500.00−0.00) |
| Business Meeting Expenses | expense | Travel & Field | -6,000.00 | -716.57 | -5,283.43 | expense (−(Dr−Cr) = −(6,000.00−0.00)) |
| 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) |
| Telephone Expenses | expense | Office & Admin | -2,500.00 | -298.57 | -2,201.43 | expense (−(Dr−Cr) = −(2,500.00−0.00)) |
| BNI Subscription and Training | expense | Office & Admin | -1,940.01 | 0.00 | -1,940.01 | expense (−(Dr−Cr) = −(1,940.01−0.00)) |
| BNI India Enterprises Private Limited | — | — | 0.00 | -273.40 | 273.40 | (ledger seen only in Direct) |
| Totals | 46,713.73 | 46,713.73 | -0.00 | |||
| Engine's Indirect Op (from `indirect_operating_net`) | 46,713.73 | 46,713.73 | -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 | -33,000.00 | 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) | -33,000.00 | |||
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.