Miscelleanous expense

A/c entries 792 views 8 replies

Miscelleanous Expense reflecting on asset side Means What? And Comes under which Group

Replies (8)

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).

jivraj singh .....pls guide abt misc. exp in details.

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.

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

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..


 

pls suggest the write off journal entry for misc expenses

P & L a/c     Dr         (Amt. of write off in respective year)

To misc. exp.

(Being misc. exp. write off)

thanks guys for your valuable reply


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