Sundry expenses definition
/What are Sundry Expenses?
Sundry expenses are miscellaneous expenditures that are not frequently incurred. These expenses are recorded within an account called sundry expenses. The intent behind using this account is so that the accounting staff does not have to waste time identifying the exact nature of these expenditures and allocating them to other, more precisely defined accounts.
If certain expenditures within this classification begin to be incurred more frequently, then they should be moved out of the sundry expenses account and into an account that more specifically identifies them.
Characteristics of Sundry Expenses
It can be useful to set up a policy for what types of expenses are to be classified as sundry expenses. This policy should state that sundry expenses have the following characteristics:
They are incurred in small amounts
They are rarely incurred
They cannot be easily included in any other expense classifications
Presentation of Sundry Expenses
A business might elect to combine several minor expense accounts and report them in aggregate in a Sundry Expenses line item. This is especially likely when a firm has a large number of line items on its income statement, and needs to condense the presentation.
Similar Terms
Sundry expenses are also known as miscellaneous expenses.