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Miscellaneous expenditure under revised schedule vi

Mahesh (CA) (30 Points)

28 May 2012

Where would Miscellaneous Expenditure appear in Revised Schedule VI as there is no mention in the Revised Schedule VI about Miscellaneous Expenditure? And whether should these items (Misc. Exp) be classified into current and Non-Current?

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9 Replies

Mayank Mall (CA-Final) (316 Points)
Replied 28 May 2012

Current Assests have got a specific set of rule to satisfy, Misc. Exp. doesn't satisfy any of those so it for sure it will fall under the non current head.

I tried to search the module but none showed the treatment for the same, I suppose it should get under the other non-current assets category. Rest all categories are noway compaitible with the exp.

Still some one else should be confirming it !!!

SUMIT MISHRA ACA, ACMA (Executive) (124 Points)
Replied 28 May 2012

Long term portion will be shown under other non current assets and short portion under other current assets!

Mayank Mall (CA-Final) (316 Points)
Replied 28 May 2012

@ Sumitji.....well misc. exp. is what is written off for a period, if period is of more than one financial year - certainly long term. Simple examples - Deffered rev. exp., prilim. exp. etc.

I am not sure about the short term portion of the expense.....can you plz give me some examples to make it more clear, what you said above - "short portion under other current assets!"

SUMIT MISHRA ACA, ACMA (Executive) (124 Points)
Replied 28 May 2012

1. Portion of mis exp due to be w.off within next fin year - show it under other current assets

2. Rest portion under other non current assets

Example : lets assume Mis exp 5000/- due to be w/off in 5 year

Due to be write off dis fin year = 5000/5 =1000/- via p&l

Remaining left 4000/-

Out of 4000/-, 1000/- will be due to be w/off in next fin year = 1000 (show dis 1000 under other Current Assets)

and remaining 3000 (4000-1000) shall be shown under other Non Current Assets

Mayank Mall (CA-Final) (316 Points)
Replied 28 May 2012

Well the closing balance sheeet should show 4000/- as non current exp., opening balance sheet would show 1000 as current and 3000 as closing....thanks for the example, I missed the opening balance sheet thought.

CA Bickey Sah (Chartered Accountant) (306 Points)
Replied 07 June 2012

Misc. Expenditure Should be Deducted From Reserve And Surplus. So as to give True And Fair Veiw Of Shareholders Fund Just As Debit Balance Of P/L A/c....... If It is treated As current asset ...Current Ratio will be Over Stated..

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CA Tanmay (CA) (28 Points)
Replied 12 September 2012

As per revised schedule VI Misc. Exp. (to the exent not written off or adjusted) shall now not to be shown separately under the head "Other Current Assets." I by mistake wrote that Misc Expenditure now to be shown in separate head "Other Current Assets".

Misc. Exp. will not be a part of Balance sheet item now they will be treated as expenses and shown as separate account in Profit and Loss a/c, expenditure incurred for them should be separately disclosed in P&L items.

Jatin Shah (CA Job) (22 Points)
Replied 14 September 2012

Originally posted by : Mahesh
	Where would Miscellaneous Expenditure appear in Revised Schedule VI as there is no mention in the Revised Schedule VI about Miscellaneous Expenditure? And whether should these items (Misc. Exp) be classified into current and Non-Current?

Hi , Miscelleaneous expenditure to the extent not written off will now be expensed out inthe period in which it has been incurred. As the format of Balance sheet is freezed sequence wise based on Noncurrent and current classification, the said expense doesnt get any place in such heads. Hence the same needs to be charged off to the P&L.