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The payment side of Cash Book is undercast by Rs. 250. If the starting point of BRS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book ? A- Add Rs 250 B- Less Rs 250 C- No effect D- Add Rs 500?
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The payment side of Cash Book is undercast by Rs. 250. If the starting...
Treatment to Reach Overdraft Balance of Cash Book

There are different treatment options available to reach the Overdraft Balance of Cash Book, depending on the situation. In this case, the payment side of Cash Book is undercast by Rs. 250, and the starting point of BRS is the Overdraft Balance as per Pass Book. The correct treatment option is to:

- Add Rs. 250 to the Cash Book balance to correct the undercasting error. This will increase the balance of Cash Book and bring it closer to the balance of Pass Book.
- The reason for adding Rs. 250 instead of subtracting it is that the undercasting error is on the payment side of Cash Book. Therefore, the actual payments made were Rs. 250 more than what was recorded in the Cash Book. As a result, the balance of Cash Book is lower than it should be, and it needs to be corrected by adding the missing amount.
- Once the correction is made, the balance of Cash Book should be compared to the balance of Pass Book. If they match, the reconciliation is complete. If they don't match, further investigation is needed to find the reasons for the differences and reconcile the accounts accordingly.

Conclusion

In conclusion, the correct treatment to reach the Overdraft Balance of Cash Book when the payment side is undercast by Rs. 250 is to add Rs. 250 to the Cash Book balance. This will correct the error and bring the balance of Cash Book closer to the balance of Pass Book, which is the starting point of BRS. By following this treatment, the accounts can be reconciled accurately and efficiently, and any discrepancies can be resolved promptly.
Community Answer
The payment side of Cash Book is undercast by Rs. 250. If the starting...
Correct is b bcoz starting point is overdraft passbook and cash book payment side is under cast by 250 (one sided mistake) if we less 250 from the overdraft passbook then we get cashbook balance. that's why we deduct 250
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The payment side of Cash Book is undercast by Rs. 250. If the starting point of BRS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book ? A- Add Rs 250 B- Less Rs 250 C- No effect D- Add Rs 500?
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The payment side of Cash Book is undercast by Rs. 250. If the starting point of BRS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book ? A- Add Rs 250 B- Less Rs 250 C- No effect D- Add Rs 500? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about The payment side of Cash Book is undercast by Rs. 250. If the starting point of BRS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book ? A- Add Rs 250 B- Less Rs 250 C- No effect D- Add Rs 500? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The payment side of Cash Book is undercast by Rs. 250. If the starting point of BRS is the Overdraft Balance as per Pass Book, then what would be the treatment to reach to Overdraft Balance of Cash Book ? A- Add Rs 250 B- Less Rs 250 C- No effect D- Add Rs 500?.
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