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If the balance as per Pass Book is the starting point, so the treatment of undercasting of receipt side of Cash Book will be :
- a)Added
- b)Deducted
- c)No treatment
- d)None of these
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
If the balance as per Pass Book is the starting point, so the treatmen...
Treatment of Undercasting of Receipt Side of Cash Book
When the balance as per Pass Book is the starting point, the treatment of undercasting of receipt side of Cash Book will be deducted from the balance as per Pass Book. This is because undercasting of receipt side of Cash Book means that some of the cash received has not been recorded in the Cash Book, resulting in a lower balance as per Cash Book. As a result, when we start with the balance as per Pass Book, we need to adjust it for the undercast amount so that the correct balance is reflected.
Steps for Deducting Undercasting of Receipt Side of Cash Book
The following steps can be followed to deduct the undercasting of receipt side of Cash Book:
Step 1: Identify the undercast amount
The first step is to identify the undercast amount on the receipt side of the Cash Book. This can be done by comparing the entries in the Cash Book with the bank statement or Pass Book.
Step 2: Deduct the undercast amount from the balance as per Pass Book
Once the undercast amount has been identified, it should be deducted from the balance as per Pass Book. This will give us the correct balance as per Cash Book.
Step 3: Record the adjustment in the Cash Book
The adjustment for the undercast amount should be recorded in the Cash Book. This can be done by writing a narration explaining the adjustment and the reason for it.
Example
Suppose the balance as per Pass Book is Rs. 50,000. On comparing the Cash Book with the Pass Book, it is found that a receipt of Rs. 5,000 has been undercast in the Cash Book. The treatment of undercasting of receipt side of Cash Book will be as follows:
- Deduct the undercast amount of Rs. 5,000 from the balance as per Pass Book:
Balance as per Pass Book = Rs. 50,000 - Rs. 5,000 = Rs. 45,000
- Record the adjustment in the Cash Book with a narration:
Cash Book:
Receipt side
To adjust undercast of Rs. 5,000
By deducting the undercast amount, the correct balance as per Cash Book of Rs. 45,000 is reflected, and the adjustment is recorded in the Cash Book.
When the balance as per Pass Book is the starting point, the treatment of undercasting of receipt side of Cash Book will be deducted from the balance as per Pass Book. This is because undercasting of receipt side of Cash Book means that some of the cash received has not been recorded in the Cash Book, resulting in a lower balance as per Cash Book. As a result, when we start with the balance as per Pass Book, we need to adjust it for the undercast amount so that the correct balance is reflected.
Steps for Deducting Undercasting of Receipt Side of Cash Book
The following steps can be followed to deduct the undercasting of receipt side of Cash Book:
Step 1: Identify the undercast amount
The first step is to identify the undercast amount on the receipt side of the Cash Book. This can be done by comparing the entries in the Cash Book with the bank statement or Pass Book.
Step 2: Deduct the undercast amount from the balance as per Pass Book
Once the undercast amount has been identified, it should be deducted from the balance as per Pass Book. This will give us the correct balance as per Cash Book.
Step 3: Record the adjustment in the Cash Book
The adjustment for the undercast amount should be recorded in the Cash Book. This can be done by writing a narration explaining the adjustment and the reason for it.
Example
Suppose the balance as per Pass Book is Rs. 50,000. On comparing the Cash Book with the Pass Book, it is found that a receipt of Rs. 5,000 has been undercast in the Cash Book. The treatment of undercasting of receipt side of Cash Book will be as follows:
- Deduct the undercast amount of Rs. 5,000 from the balance as per Pass Book:
Balance as per Pass Book = Rs. 50,000 - Rs. 5,000 = Rs. 45,000
- Record the adjustment in the Cash Book with a narration:
Cash Book:
Receipt side
To adjust undercast of Rs. 5,000
By deducting the undercast amount, the correct balance as per Cash Book of Rs. 45,000 is reflected, and the adjustment is recorded in the Cash Book.
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Community Answer
If the balance as per Pass Book is the starting point, so the treatmen...
Ans is b
becz pb (pass book)se start kr rhe h or cb pr aayege
then treatment according to cb
what affect of cb on pb
receipt side is undercast then cash balance amount is less and pb is too more in the presence of cb
then I will deduct in brs..
becz pb (pass book)se start kr rhe h or cb pr aayege
then treatment according to cb
what affect of cb on pb
receipt side is undercast then cash balance amount is less and pb is too more in the presence of cb
then I will deduct in brs..
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If the balance as per Pass Book is the starting point, so the treatment of undercasting of receipt side of Cash Book will be :a)Addedb)Deductedc)No treatmentd)None of theseCorrect answer is option 'B'. Can you explain this answer?
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