what is the difference between overcast and undercast in brs

Hi Anwesha

‚ÄčLet us first understand the meaning of undercasting and overcasting!

Undercasting means the total of a side has been totaled short. For example, the total of payments 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 credit side (payments side) of the Cash Book was totaled less by Rs 200, the actual total should have been Rs 12,200 (12,000 + 200).

Similarly, overcasting means totaled in excess. Consider the same example, now, the payments side was overcasted by Rs 200. So, the actual total of the payments side would be: Rs 12,000 - 200 = Rs 11,800

Now, let us take an example:

Balance as per Cash Book = Rs 23,000
Adjustment:
(1) Payments side of Cash Book was undercasted by Rs 500
(2) Deposits side of Pass Book was overcasted by Rs 1,000

Adjustment (1): Undercasting of Payments side means Cash Book balance will be more in comparison to the Pass Book Balance

Reason: Balance of Cash Book = Receipts side - Payments side
So, when payments are less (than actual), balance will be more.

Thus, in order to be at par with the Pass Book balance, we will show it in the 'minus' column.

Adjustment (2): Overcasting of Deposits side means Pass Book balance will be more in comparison to the Cash Book Balance

Reason: Balance of Pass Book = Deposits - Withdrawals
So, when deposits are more (than actual), balance will be more.

Thus, in order to be at par with the Pass Book, we will show it in the 'plus' column.

Hope this clarifies your doubt!!

 

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