What does "Debit side of the Cash book was undercasted by rs.200 " mean?the question says that there is credit balance as per pass book....so should this entry go in the plus column or the minus column?and why?


Let us first understand the meaning of undercasting!

Undercasting means the total of a side has been totaled short. For example, the total of receipts side of the Cash Book was Rs 12,000, however, it was found that it was undercasted by Rs 200.
This means that the total of debit side (receipts side) of the Cash Book was totaled less by Rs 200, the actual total should have been Rs 12,200 (12,000 + 200).

Now, let us take an example:

Balance as per Pass Book = Rs 23,000
(1) Debit side of Cash Book was undercasted by Rs 200

Adjustment (1): Undercasting of debit side of Cash Book means Cash Book balance is less than the Pass Book balance

Reason : Balance of Cash Book = Receipts side - Payments side
So, when receipts side (debit side) is less (than actual), balance will be less.

Thus, in order to be at par with the Cash Book balance, the balance as per Pass Book is reduced and thus, it will be shown in 'Minus' column.

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