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Spondoo Accounting
Call for Assistance: 02033 259 341
Spondoo Accounting

Sundry expenses (miscellaneous expenses)

May 27, 2021

What are Sundry Expenses? 

A sundry expense is a rare and relatively unimportant expenditure that does not fit into standard accounting expenses categories (asset or expense category). They are usually: 

  • Random or infrequent 
  • Considerably low amount  
  • Miscellaneous in nature  
  • Must not be of a regular nature 

Examples of Sundry Items (Expenses) 

Sundry expenses do not include any regular payments or capital expenses, but instead are infrequent and not part of your routine business operations.  

Examples of Sundry Expenses may include: 

  • Bank service charges  
  • Gifts and flowers  
  • Festival celebration 
  • Donations 

Sundry Expenses vs General Expenses 

This table will help you determine whether an expense qualifies as general or sundry. 

General expenses

Sundry expenses

Easy to classify under regular expense accounts Hard to categorise under regular expense accounts 
Can include expenses like travel costs, fuel, salaries, marketing costs, and raw materials. Can include expenses like one-time fees, donations, and gifts.
Regular, predictable timing Irregular in timing 
Large sums of money expenditure. A small amount of money expenditure.

 

How to record Sundry Expenses in accounting 

Although sundry expenses may not come up frequently, they must be recorded on your financial statements and their taxable nature determined like any other item. When you draft your profit and loss account or general ledger, you need to report sundries on the expenses side of your Chart of Accounts.  

You can list them as a single line item under expenses if you are a small business, or create an entire group of accounts for recording the different types of Sundry Expenses. 

When to move sundry expenses out of journal entry? 

You should observe your sundry expenses and analyse your expense accounts from time to time to identify emerging patterns in the expense journal. If a certain type of sundry becomes regular and starts occurring frequently, you need to create a new account to cover the recurring expense. 

In this instance, you then report the item separately under a name that identifies the nature of that expense.  

Where do sundry expenses go in trial balance? 

Place your Sundry expenses on the expenses side (left) of your profit and loss account (Income statement).  

Need help with expenses? 

Feel free to contact Spondoo Accountant for advice on tax planning and offsetting expenses against income. 

 

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Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. Spondoo is a trading name for Accounting SQL Limited, authorised & license accounting firm under the Institute of Financial Accountants.

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