The word “Sundry” is used for items which are unimportant 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.
They may also be referred to 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 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.
Related Topic – What is a Journal?
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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 sundries 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 reclass dozens of small expenses as sundry expenses has been greatly reduced.
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