Accounting - miscellaneous expenses

GeekInterview.com > Interview Questions > Accounting

Go To First | Previous Question | Next Question

Accounting | Question 99 of 151

miscellaneous expenses

what is miscellaneous expenses & why they carry forward every year

Total Answers and Comments: 3

Last Update: October 12, 2008 Asked by: Aruna patil

Sponsored Links

Best Rated Answer

—

Submitted by: Rekha yadav

Miscellaneous expenses are the petty expenses, which every business incurr in their day to day transaction, these could be refreshment expenses, conveyance, postage etc. for accounting these expenses are generally debited to single account i.e. miscellaneous or sundry expenses account which record all these petty expenses.

Prepaid expenses are those expenses which are paid in advance for eg. rent paid for factory for next 5 years or insurance, that' these are carry forward every year.

Don't confused with Prepaid & Miscellaneous expense both are different.

Thanks
Rekha

Above answer was rated as good by the following members:
Lokesh M

December 18, 2007 01:04:25

ketavarapu

Member Since: June 2007 Contribution: 9

RE: miscellaneous expenses

The following are the misc.exps
1. Preiliminary exps
2. Exps on underwriting of shares & debentures incl u/w comm. or brokerage.
3.Discount allowed on issue of shares & debentures
4.Int. paid out of capital during construction period
5. Development expenditure not adjusted.

These exps are shown under the head Misc. Expenditure Assets side of the B/S

Is this answer useful? Yes | No

0 1

Overall Rating: -1

December 18, 2007 15:48:12

Rekha yadav

Member Since: December 2007 Contribution: 2

RE: miscellaneous expenses

Miscellaneous expenses are the petty expenses, which every business incurr in their day to day transaction, these could be refreshment expenses, conveyance, postage etc. for accounting these expenses are generally debited to single account i.e. miscellaneous or sundry expenses account which record all these petty expenses.

Prepaid expenses are those expenses which are paid in advance for eg. rent paid for factory for next 5 years or insurance, that' these are carry forward every year.

Don't confused with Prepaid & Miscellaneous expense both are different.

Thanks
Rekha

Is this answer useful? Yes | No

1 0

Overall Rating: +1

October 12, 2008 07:59:58

vasudeo007

Member Since: July 2008 Contribution: 60

RE: miscellaneous expenses

Miscellaneous expenses are those expenses which are very minor/small in nature.

Any expense which cannot be debited to any expense account is debited to misc exp a/c.

Examples: donations given to someone (if they are too small to call donation, else debited to donations a/c),

Pooja performed on auspicious occassions and expenses related to that. (again if they are too small)

peda or other sweetmeat provided to employees on any occassion. (the same condition)

expenses of pastime activities provided to employees like going to cinema etc.

flower vendor (for daily offering of flowers/garland to any idol, company founder's photo etc)

These items can be debited to any particular a/c as well. But if they are too small then they are debited to misc exp a/c. The control over this account becomes easier if all such expenses are consolidated into one account. Else if all these expenses are debited to different accounts then one will need to put a lot of efforts to ascertain how much expense really has occurred under which head.

They may be carried forward to the next year if they are unpaid or paid in advance.

Is this answer useful? Yes | No

Go To Top