Misc.Expenses

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Saroj Rana (Querist)

28 December 2007 what r the elements of Misc.Exp......? and wheather it is an P/L item or balance sheet item. Plz help me

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)

28 December 2007 There is no any definition of this term but any expenditure which is not forming part of another known expenditure item name; not material in nature and is revenue in nature is misc. expense part of indirect expenses.
AND if expenses is capital in nature then it should be form part of assets.

Saroj Rana

Saroj Rana (Querist)

28 December 2007 Thanx for the valuable advise

R.V.RAO

R.V.RAO (Expert)

29 December 2007 THERE ARE TWO TYPES OF MISCELLANEOUS EXP. LET US GET IT VERY CLEAR ON THIS.
AS PER PART II OF SCHEDULE VI WHICH IS PROFIT AND LOSS ACCOUNT,IT IS CLEARLY STATED THAT ANY ITEM UNDER WHICH THE EXP. EXCEED ONE PERCENT OF THE TOTAL REVENUE OF THE COMPANY OR RS. 5000/- WHICHEVER IS HIGHER SHALL BE SHOWN AS A SEPATATE AND DISTINCT ITEM AGAINST AN APPRPRIATE ACCOUNT HEAD IN PROFIT AND LOSS ACCOUNT AND SHALL NOT BE COMBINED WITH ANY OTHER ITEM TO BE SHOWN UNDER MISC. EXPENSES.
SO IF ANY ITEM OF EXP. ABOVE RS. 5000 IS SHOWN UNDER MISC. EXP. IN P&L ACCOUNT, WE NEED TO EXPLAIN TO THE ASSESSING OFFICER ALL SUCH DATAILS WITH SUPPORTS.
THEN LET US COME TO PART I OF SCHEDULE VI WHICH IS BALANCE SHEET.
ON THE ASSET SIDE OF BALANCE SHEET, UNDER ITEM 4 (a) miscellaneous exp,. to the extent not written off or adjusted IS SHOWN .
THE DETAILS THAT NEED TO BE SHOWN UNDER THIS HEADOF MISC.EXP. ARE AS FOLLOWS.
1)PRELIMINARY EXP.
2)EXP..INCL.COMM.OR BROKERAGE ON UNDERWRITING OF SHARES OR DEB.
3)DISCOUNT ALLOWED ON ISSUE OF SHARES OR DEB.
4)INTEREST PAID OUT OF CAPITAL DURING CONSTRUCTION ( ALSO STATING RATE OF INTEREST)
5)DEVELOPMENT EXPENDITURE NOT ASJUSTED
6) OTHER ITEMS(SPECIFY NATURE).
R.V.RAO

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Saroj Rana

Saroj Rana (Querist)

31 December 2007 Thanks a lot