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).
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, when the starting balance is balance as per Cash Book, it will be shown in the 'minus' column (to make Cash Book = Pass Book)
When the starting balance is balance as per Pass Book, it will be shown in the 'plus' column (to make Pass Book = Cash Book)
