Lesson 4 of 8 · 2 min

Cash flow

The money itself: what came into and went out of your cash, bank and wallets, by what it was for.

Cash flow
1 Jul 2026 to 31 Oct 2026
Opening balance
Cash, bank and wallets at the start
Rs 1,335,000.00
Money in
From customers
Rs 11,980,000.00
Total in
Rs 11,980,000.00
Money out
To suppliers
Rs 10,127,000.00
Expenses
Rs 1,610,000.00
Total out
Rs 11,737,000.00
Net change
Rs 243,000.00
Closing balanceRs 1,578,000.00
Money moved between your own accounts nets to nothing, so transfers don't show.
Cash flow follows the money itself: what your cash, bank and wallets held at the start (the opening balance), what came in and went out, by what it was for, and what they hold at the end (the closing balance). Under it, each account from start to end.
Before
Cash in hand
Rs 150,000.00 less
Cash banked
After
Meezan current account
Rs 150,000.00 more
Cash flow: no change
Money moved between your own accounts isn't in or out: banking the week's cash doesn't change what you have, so cash flow leaves transfers out.
Profit
Rs 778,000.00
More money
Rs 243,000.00
Customers still owe
Rs 1,214,000.00
A profit of Rs 778,000 and Rs 243,000 more in the bank: where's the rest? Mostly in what customers still owe you and in stock on the shelf, less what you still owe suppliers. Read the two reports together.

Try it

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Open Cash flow

Quick check

One quick question. Pick an answer and Leo will tell you how you did.

1. You move Rs 150,000 from the cash drawer to the bank. What does cash flow show?

Rs 150,000 inNothing: it's the same money in a different place

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