Profit and loss/Cash Flow reporting question

[Martijn Heuts]

 Hello,
I am trying to understand the reporting part and trying to figure out my net profit. First I pull up my monthly "Cash Flow" report which shows all incoming money into my bank account andit shows all expenses taking out of my bank account (assets).
Then there is the Income and Expenses report.  This report shows "Income" which doesn't add up to the actual income, so I assume it's "Charges" instead, right? (I had some client's only paying half their balance at the time of the order).Then it shows expenses which seem to be all actual expenses, BESIDES some expenses from a liability account.
Let me explain:I just bought this business a few months ago and because of circumstances I could not order a product directly from a particular vendor as my new account was not setup yet. Instead (with the previous owner's permission) I ordered it through the previous owner's old account. This became a liability account in GNU Cash for me. So the expenses I had for the product I put in to a liability account as I needed to pay the owner back (instead of the vendor).
Now in the Cash Flow report this expense shows up, as I paid her via a check which came off my debit account (asset)But in the Income and Expenses report this expense does not show up (probably because I can't mark this as an expense and liability at the same time).
So with all this said I am trying to figure out my profit as the Cash Flow expenses are different than the Income and Expenses report.
I hope I am making some sense. I appreciate any help you can provide.Thanks and have a great day!
Martijn