In BRS if cash book balance is given and receipt side is undercast then + and if overcast then - and in payment side if undercast then - and if overcast then + ...and this get opposite if pass book is given

Bank reconciliation statement is a document that reconciles the balance of cash in the bank account of a company with the balance in its accounting records. It helps to identify discrepancies between the two balances and also to detect any fraudulent activities. Two common types of adjustments in a bank reconciliation statement are undercast and overcast treatments.

Undercast Treatment:

Undercast treatment refers to the situation where the bank balance shown in the bank statement is less than the balance shown in the company's accounting records. This may be due to various reasons such as:

• Outstanding checks
• Bank service charges
• Interest earned on the bank account
• Deposits in transit

To adjust for undercast treatment, the following steps should be taken:
• Add the amount of outstanding checks to the bank balance
• Deduct the amount of bank service charges from the bank balance
• Add the amount of interest earned to the bank balance
• Add the amount of deposits in transit to the bank balance

Overcast Treatment:

Overcast treatment refers to the situation where the bank balance shown in the bank statement is more than the balance shown in the company's accounting records. This may be due to various reasons such as:
• Deposits credited by the bank but not yet recorded in the company's records
• Errors made by the bank

To adjust for overcast treatment, the following steps should be taken:
• Deduct the amount of deposits credited by the bank but not yet recorded in the company's records from the bank balance
• Deduct any errors made by the bank from the bank balance

Format of Bank Reconciliation Statement:

The format of a bank reconciliation statement includes the following details:
• Name of the company
• Date of the bank statement
• Bank balance as per the bank statement
• Adjustments for undercast treatment
• Adjustments for overcast treatment
• Adjusted bank balance
• Accounting balance as per the company's records
• Reasons for discrepancies between the two balances
• Final reconciled balance

Conclusion:

Bank reconciliation statement is a crucial document for any company to ensure the accuracy of its accounting records. Undercast and overcast treatments are common adjustments that need to be made to reconcile the bank balance with the accounting records. The format of the bank reconciliation statement provides a clear picture of the adjustments made and the final reconciled balance.