The word “Sundry” is used for items which are not important enough to be mentioned individually. Sundry expenses are costs incurred for small things which can not be categorized under a specific heading. They are usually infrequent, considerably low, miscellaneous in nature & are not classified under a specific ledger account.
Sundry expenses may also be referred as “Miscellaneous Expenses”. They can be related to a particular area within a business such as sundry office expenses, sundry retail expenses etc.
Examples of Sundry Expenses
As mentioned above these type of expenses do not usually have a separate ledger account however they can be grouped together and clubbed together as sundry expenses. There are no hard and fast rules for categorizing a expenses as sundries but they should definitely not include any regular payments or capital expenses. Examples may include expenses related to Bank service charges, gifts & flowers, festival celebration, donations, etc.
Treatment in Financial Statements
Sundry expenses are shown on the expenses side (left) of a profit and loss account (Income statement). Size, industry practice & nature of an expense plays an important role to determine whether it should be included in Sundry expenses or be given a separate ledger account.
Back in the days with manual bookkeeping, there was a greater need of such classifications since having a particular ledger account made for every little expense would not feasible. Now with ERPs and modern computer systems the need to re-class dozens of small expenses as sundry expenses has been greatly reduced.
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