WHAT DOES UNDERCAST OVERCAST MEAN - Accountancy - Trial Balance and Rectification of Errors

Question

WHAT DOES UNDERCAST & OVERCAST MEAN

Mohammed Vaseem · Accepted Answer

Overcast (or undercast)
means overvaluation (or undervaluation) of the values In accounting
terminology, generally overcast and undercast are associated with
the Subsidiary Books such as, Sales Book, Cash Book, Purchases
Book, Sales Books, etc Overcast of a Subsidiary Book (say,
Purchases Book) implies that the total of the book is depicting an
excess value than it actually is On the other hand, undercast of a
Subsidiary Book (say, Purchases Book) implies that the total of the
book is lower than its actual amount In both the cases, the total
of the Subsidiary Book does not reveal the actual balance in the
books
Example of
Overcast: If the total of the
Purchases Book (of Rs 18,000) is overcast by Rs 2,000, then it
implies that the actual (true) amount in the Purchases Book is Rs
16,000
Example of
Undercast: If the total of the
Purchases Book (of Rs 18,000) is undercast by Rs 2,000, then it
implies that the actual (true) amount in the Purchases Book is Rs
20,000

WHAT DOES UNDERCAST & OVERCAST MEAN.