Sundry Expenses (Definition) | Journal Entry | Sundry vs General Expense


hello everyone hi welcome to the channel
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a topic with us as called sundry expenses now what is sundry expenses we
have a dialog box here where there is a couple of details that resident will try
and interpret them first and then we’ll move to the explanation part they are
the regular business expense that is line-item that is found on the income
statement of all the organization fine let’s understand what are the sundry expenses or others see sundry expenses
are those expenses that is done in the regular course of the business but you
know they are random in nature and in it comprises of small number of it is
really very small number of expenses compared to the overall expenses of the
business relatively you know unimportant and insignificant so such expenses are
relatively very small undoubtedly and in very infrequent as such you know they
are not assigned to individual ledger account but are collectively classified
as a group known as the sundry expenses so in a day-to-day running of business
in order to record such expenses without increasing separate ledger accounts an
administrative workload of the accounting department an organization
such expenses are grouped you can say the our group or clubbed together under
the group head under sundry expenses and sundry expense may also be referred as
your miscellaneous expenditure so the word sundry is basically the item which
is completely irrelevant and unimportant to be mentioned individually so these
expenses are unusual and random in nature don’t include any business
expenses which is of a regular nature of capital expenditure in nature so this
expense may be related to a particular area business and in such cases are
clubbed as these sundry office expenses also do manufacturing expenses now I
will take few examples to illustrate this topic well let’s take this sundry
expenses example to understand this concept in detail let’s say there is a
company called BL international ok and that they are into the business of
shoe manufacturing ok the company incurs various expenses like raw material rent
Advertising Cost which are regular expenses in its day-to-day operations in
one of the recently shipped order of 1000 customized shoes
for its client XYZ international was found to be found at a time of delivery
okay that an individual logo is not passed on to 200 customized
shoes so the company spend around $50 in purchasing the individual logo and paste
it the same on the 200 customized shoes so this $50 expense is a sundry expense
example it is neither a regular nature and also this is very small also BL
international classify the same under sundry expenses it’s very
important to note here that you know these sundry expenses they vary from
industry to industry and there is no particular item which can be categorized
particularly under the head sundry expense the basic rule to be kept in
mind while classifying expenses as sundry expense are you know it should be
random in nature or infrequent it should be unusual must be small in amount and
must not be regular nature okay so now we will try and discuss a regular that
is the sundry versus the general expenditures see the key differences
between the movie sundry expenses and GE that is general expenses okay the
meaning see it refers to any business expense which is of random see it is a
business expenditure which is a random in nature small amount that can be
cannot be classified under any regular business expense and this is basically
business expense of regular nature okay and in amount that is larger than these
sundry expenses the regularity if you see this are quite irregular in nature
and they are regular in nature now the amount that is involved it comprises of
very small amount and over here usually the amount of the general expense is a
very good quantum an example like salary Advertising Cost raw material cost
and so on and so forth now how these under expenses are
recorded in the offense statement we financial statement well see sundry
expenses shown under the head of income statement since it is an expense it is
shown on the debit side of the income statement the expenses are like rent salaries you
have sundry expenses and then to net profit on the income side it includes
gross profit income from commission yeah so this is
it now how do we record the journal entry
part let me take you down for the journal entry for this okay fine let’s
start it it goes with sundry expenses count that is debited 10,000 to cash or
bank balance that is 10,000 okay then this sundry expenditures gets
transferred to P&L so we’re here to sundry expenses that comes down to 10000 years and 10000 years so let me give my final thoughts on this
particular topic see sundry expenses at regular they are
regular business expense line item that is found in the income statement of all
organization they are basically on the income statement quite clear you know of
all the organization and sundry expenditures basically they are used to
club together all irregular business expenses so these
expenses are very small in denomination and they’re definitely not regular now
classifying an expense as sundry expenses is not a stand criteria as what
constitutes a sundry expense in one organization or industry may not be a
sundry expense in another so those whenever an expense is classified under
sundry expenses one should follow the rule of thumb that states that expenses
should be random or infrequent it should be again unusual must be small in amount
and must be having a regular nature so unlike the general business expenses
which are categorized under the regular hits such as like salary wages these
expenses are recorded within an account called the sundry expenses so the
purpose behind using this account sundry expense account is to save the time and
energy of accounting department in identifying exact nature of this
expenses and allocating them to other more precisely defined accounts so
however it is reported and to note that you know once any of the expenses which
are classified under these and the expenses become regular in nature and
started occurring more and frequently they should be moved out to the head of
some day expenses and insert reports separately and their own name that
identifies the nature of the expense so that’s it for this particular topic if
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