The payment side of cash book is understated by Rs 200 ........

General Accounting Principles Bank reconciliation statement

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The payment side of cash book is understated by Rs.200.:

Rs. 200 added

Rs. 200 deducted

Rs. 400 added

Rs. 400 deducted

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Explanation:

Undercasting means the total of a side has been totaled short. it was found that it was undercasted by Rs 200. his means that the total of credit side (payments side) of the Cash Book was totaled less by Rs 200 so we will add Rs 200 to the cashbook

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.