A business firm spends money  for various type of expenses.  Normally, the accounts heads are assigned to those expenses which are repeatedly incurred. But there are so many expenses for which no account heads can be created because of very few transactions for certain expenses. If an accountant creates individual account heads for such type of transactions, then it will be very difficult to control. Therefore, all these expense are booked under miscellaneous expenses account or general expenses account. For example:- very small amount paid for donations or charities, membership fees for local organizations ,  short and excess amount written off, festival celebration expenses and other expenses for which no account head is available.


Accounting Treatment of Miscellaneous Expenses

In case of payment in cash or by cheques:-

Type of voucher to be prepared:- Cash or Bank payment voucher

Entry to be made

Debit:-      Miscellaneous Expenses Account


General Expenses Account

Credit:-     Cash Account


Bank Account

Treatment of Miscellaneous Expenses in Final Accounts

Miscellaneous expenses are indirect expenses and are shown in expenses side of profit and loss account.