Question

Explain undercast and overcast??
This is related to Passbook

Answer 1

‘undercast’ is a term referring to the transfer of an amount from one place to another, (whether in the same account as in balance brought forward, of between two accounts like ledger account to trading and p/l account, etc.) at an reduced value.

for example: if you sell a product at 2000 (cash sale), and make a wrong journal entry of

Cash A/c… Dr 200

To Sales A/c 200

then it is not undercast, it is misstated.

however if you had passed the correct entry

Cash A/c… Dr 2000

To Sales A/c 2000

and then at a later stage, while ledger posting in the Sales A/c or the Cash A/c, posted it as 200, (or anything less than 2000) then that particular account would have been undercast by the difference in the amounts. in our example (2000-200) 1800.

hope this'll help. :

Answer 2

HOPE IT WORKS MATE

PLS MARK AS BRAINLIEST

Undercast is a type of forecasting error that occurs when estimates turn out to be below realized values. These estimates could apply to sales, an expense line item, net income, cash flow or any other financial account

An overcast is a forecasting error that occurs when estimating a metric, such as future cash flows, performance levels or production. Overcasting is when the estimated value turns out to be above the realized value.