Miscelleanous Expense reflecting on asset side Means What? And Comes under which Group
Jeevraj Singh Tanwar
(Accountant)
(42 Points)
Replied 06 April 2013
Deferred Revenue expenditure and in case of company p&L Accounts Debit Balance (Loss), Preliminary Expenses, Discount on issue share/debenture, Deferred Advertisement Expenses, show in this group Miscelleanous expenses (Assets) . This Expenses Written off in 5 year , written off amount show in P& L Accounts Ledger Miscelleanous Expenses (Indirect Expenses Group).
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 13 April 2013
jivraj singh .....pls guide abt misc. exp in details.
Arpan De
(Articled Assistsant - CA Final)
(68 Points)
Replied 14 April 2013
Miscelleneous Expenses are those expenses that do not find any specific classification under any head or group of expenditure. Ledger accounts cannot be created with the name Misc. Exp. It is rather a group under which unclassified expenses are defined.
In the case of non-corporate business entities expenses like: Preliminary Expenses (expenses incidental to commencement and constitution of business),etc; while in the case of corporate entities all the various expenses mentioned by Mr. Jeevraj Singh Tanwar will be disclosed under "Other Current Assets" in the Revised Schedule VI.
know your self
(knowledge is power of student)
(98 Points)
Replied 15 April 2013
i thing so this will disclosed under "OTHER NON-CURRENT ASSETS"
as this expenditure we have to write off in 5 years(i.e. more than 12 month) so it will not grouped under current assets
parag_0302
(Asstt. Commercial Officer)
(124 Points)
Replied 15 April 2013
You are right Arpan as per the revised schedule VI the treatments of all those items is as per your reply except "P&L Accounts Debit Balance (Loss)",
It is shown under the head Reserve & Surplus as negative item. it is not shown under the head Other current asset like other Misc. exp..
Vardan Singh Sengar
(Accounts Manager in Private Company)
(433 Points)
Replied 18 April 2013
pls suggest the write off journal entry for misc expenses
parag_0302
(Asstt. Commercial Officer)
(124 Points)
Replied 19 April 2013
P & L a/c Dr (Amt. of write off in respective year)
To misc. exp.
(Being misc. exp. write off)
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