id = "cash-flow.reversal-of-a-reversal"
title = "A contribution, its reversal and the reversal's reversal"
rule = "Reversals MUST pair along the chain from its root: an entry and its reversal both in the period drop out together, and a reversal of a reversal whose partner is already paired MUST be reported, as its root would be."
status = "AUTHORITY"
sources = [
  "ASC 230-10-45-14(a)",
  "ASC 230-10-45-24",
  "Pacioli, Summa (1494), ch. 31 (the correcting entry)",
]
tags = ["accrual", "book", "us", "cash-flow", "reversal"]

[setup]
currency = "USD"
fiscal_year_start = "01-01"
basis = "accrual"
rounding = "half-even"
cash_accounts = ["1000"]

[[setup.accounts]]
code = "1000"
name = "Cash"
type = "asset"

[[setup.accounts]]
code = "3001"
name = "Capital — Member B"
type = "equity"

[[setup.members]]
name = "Member B"
capital_account = "3001"

[[events]]
date = "2026-01-20"
description = "Opening contribution"
lines = [
  { account = "1000", side = "debit", amount = "1000.00" },
  { account = "3001", side = "credit", amount = "1000.00" },
]

[[events]]
date = "2026-02-02"
description = "Contribution — Member B"
lines = [
  { account = "1000", side = "debit", amount = "300.00" },
  { account = "3001", side = "credit", amount = "300.00" },
]

[[events]]
date = "2026-02-03"
description = "Reverse entry 2"
reverses = 2

[[events]]
date = "2026-02-04"
description = "Reverse entry 3: the contribution stands"
reverses = 3

# By hand, February: entries 2 and 3 pair (the root and its reversal);
# entry 4 reinstates the contribution and is reported: financing +300.00,
# the change in cash.
[[expect]]
query = "cash_flow"
from = "2026-02-01"
to = "2026-02-28"

[expect.values]
financing = "300.00"
net_change = "300.00"
cash_beginning = "1000.00"
cash_ending = "1300.00"
difference = "0.00"
"financing.4" = "300.00"
"financing.count" = "1"
"noncash.count" = "0"

# From February 3 the root is before the period: entries 3 and 4 pair, and
# nothing is reported (no cash moved net, 1,300.00 to 1,300.00).
[[expect]]
query = "cash_flow"
from = "2026-02-03"
to = "2026-02-28"

[expect.values]
financing = "0.00"
net_change = "0.00"
cash_beginning = "1300.00"
cash_ending = "1300.00"
difference = "0.00"
"financing.count" = "0"