Home › CA Foundation › accounting › Bank Reconciliation Statement › Overcasting of the debit side of cash book by ₹2…
Overcasting of the debit side of cash book by ₹2,000 causes the cash book balance to be:
AUnderstated by ₹2,000 amount
BOverstated by ₹2,000 amount
CCorrect, no error involved
DDoubled in absolute value
Answer & Solution
Correct answer: B. Overstated by ₹2,000 amount
1. Overcasting on the debit side means receipts have been overstated.
2. A larger debit total means cash book bank balance appears higher than it should.
3. This is an error type difference that must be corrected, normally via adjusted cash book.
_Source: ICAI BoS Foundation Paper 1, Ch 3 "Bank Reconciliation Statement", §6 (3) Errors_
Related questions
Why is regular bank reconciliation considered an internal control tool?Bills receivable discounted with bank, charged ₹1,600 on dishonour of ₹80,000 bill. StartiWhich of the following constitutes an error that the bank must rectify in pass book, not tBank Pass Book balance ₹10,00,000. Insurance ₹60,000 paid by bank. Bank charges ₹2,000 twiOn 30/06/2022 cash book shows balance ₹44,50,000. Cheques issued ₹6,00,000 unpresented. DeStarting from debit balance as per bank statement, which item is ADDED?Cheques deposited but not yet credited, when starting BRS from a debit (unfavourable) passA cheque of ₹25,000 was issued and also presented in same month, but erroneously recorded