Debit side of cash book is undercast with explanation and reasons
Answers
Debit Balance of Cash Book means Favourable Balance of Cashbook. Undercasting of debit balance means undercasting of receipts. Accordingly, the amount would be added in BRS. It would be great if you can help us with a numerical where you came across this transaction so as we can help you understand in an even better manner.All transactions in the cash book have two sides: debit and credit. All cash receipts are recorded on the left-hand side, and all cash payments are recorded by date on the right-hand side. The difference between the leftand right sides shows the balance of cash on hand, which always shows a debit balanceAdvantages of Cash book. 1. Saves time and labour: When cash transactions are recorded in the journal a lot of time and labour will be involved. To avoid this allcash transactions are straight away recorded in thecash book which is in the form of a ledger.Mar 8, 2017