diff --git a/backend/src/modules/reports/reports.service.ts b/backend/src/modules/reports/reports.service.ts
index 094f73c..0222971 100644
--- a/backend/src/modules/reports/reports.service.ts
+++ b/backend/src/modules/reports/reports.service.ts
@@ -508,25 +508,25 @@ export class ReportsService {
     const monthLabels = ['Jan','Feb','Mar','Apr','May','Jun','Jul','Aug','Sep','Oct','Nov','Dec'];
 
     // ── 1) Get current balances as of now ──
-    // Operating cash (asset accounts with fund_type=operating)
+    // Use ASSET accounts for both operating and reserve — these represent actual cash holdings.
+    // Equity accounts are the bookkeeping counterpart and would double-count.
     const opCashRows = await this.tenant.query(`
       SELECT COALESCE(SUM(sub.bal), 0) as total FROM (
         SELECT COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0) as bal
         FROM accounts a
-        LEFT JOIN journal_entry_lines jel ON jel.account_id = a.id
-        LEFT JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
+        JOIN journal_entry_lines jel ON jel.account_id = a.id
+        JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
         WHERE a.account_type = 'asset' AND a.fund_type = 'operating' AND a.is_active = true
         GROUP BY a.id
       ) sub
     `);
-    // Reserve cash (equity fund balance for reserve)
     const resCashRows = await this.tenant.query(`
       SELECT COALESCE(SUM(sub.bal), 0) as total FROM (
-        SELECT COALESCE(SUM(jel.credit), 0) - COALESCE(SUM(jel.debit), 0) as bal
+        SELECT COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0) as bal
         FROM accounts a
-        LEFT JOIN journal_entry_lines jel ON jel.account_id = a.id
-        LEFT JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
-        WHERE a.fund_type = 'reserve' AND a.account_type = 'equity' AND a.is_active = true
+        JOIN journal_entry_lines jel ON jel.account_id = a.id
+        JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
+        WHERE a.account_type = 'asset' AND a.fund_type = 'reserve' AND a.is_active = true
         GROUP BY a.id
       ) sub
     `);
@@ -641,13 +641,14 @@ export class ReportsService {
 
     // For historical months, compute cumulative balances from journal entries
     // We'll track running balances
-    // First compute opening balance at start of startYear
+    // First compute opening balance at start of startYear using asset accounts
     const openingOp = await this.tenant.query(`
       SELECT COALESCE(SUM(sub.bal), 0) as total FROM (
         SELECT COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0) as bal
         FROM accounts a
-        LEFT JOIN journal_entry_lines jel ON jel.account_id = a.id
-        LEFT JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
+        JOIN journal_entry_lines jel ON jel.account_id = a.id
+        JOIN journal_entries je ON je.id = jel.journal_entry_id
+          AND je.is_posted = true AND je.is_void = false
           AND je.entry_date < $1::date
         WHERE a.account_type = 'asset' AND a.fund_type = 'operating' AND a.is_active = true
         GROUP BY a.id
@@ -656,12 +657,13 @@ export class ReportsService {
 
     const openingRes = await this.tenant.query(`
       SELECT COALESCE(SUM(sub.bal), 0) as total FROM (
-        SELECT COALESCE(SUM(jel.credit), 0) - COALESCE(SUM(jel.debit), 0) as bal
+        SELECT COALESCE(SUM(jel.debit), 0) - COALESCE(SUM(jel.credit), 0) as bal
         FROM accounts a
-        LEFT JOIN journal_entry_lines jel ON jel.account_id = a.id
-        LEFT JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
+        JOIN journal_entry_lines jel ON jel.account_id = a.id
+        JOIN journal_entries je ON je.id = jel.journal_entry_id
+          AND je.is_posted = true AND je.is_void = false
           AND je.entry_date < $1::date
-        WHERE a.fund_type = 'reserve' AND a.account_type = 'equity' AND a.is_active = true
+        WHERE a.account_type = 'asset' AND a.fund_type = 'reserve' AND a.is_active = true
         GROUP BY a.id
       ) sub
     `, [`${startYear}-01-01`]);
@@ -719,19 +721,13 @@ export class ReportsService {
       const label = `${monthLabels[month - 1]} ${year}`;
 
       if (isHistorical) {
-        // Use actual journal entry changes
+        // Use actual journal entry changes from asset accounts
         const opChange = histIndex[`${year}-${month}-operating`] || 0;
         runOpCash += opChange;
 
-        // For reserve, we need the equity-based changes
-        const resEquityChange = await this.tenant.query(`
-          SELECT COALESCE(SUM(jel.credit - jel.debit), 0) as net
-          FROM journal_entry_lines jel
-          JOIN journal_entries je ON je.id = jel.journal_entry_id AND je.is_posted = true AND je.is_void = false
-          JOIN accounts a ON a.id = jel.account_id AND a.fund_type = 'reserve' AND a.account_type = 'equity'
-          WHERE EXTRACT(YEAR FROM je.entry_date) = $1 AND EXTRACT(MONTH FROM je.entry_date) = $2
-        `, [year, month]);
-        runResCash += parseFloat(resEquityChange[0]?.net || '0');
+        // Reserve also uses asset account changes (already in histIndex from section 4)
+        const resChange = histIndex[`${year}-${month}-reserve`] || 0;
+        runResCash += resChange;
 
         datapoints.push({
           month: label,