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Use Miscellaneous Expenses to charge expenses that do not fit into one of the other transaction entry types to your projects, and to distribute overhead costs to projects. learnersleague

Miscellaneous Expenses are those expenses that cannot be classified as manufacturing, selling, and administrative expenses. Hope this clears your mind.

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Miscellaneous expense could also be a line on the income statement that reports the amounts from many general ledger accounts whose balances are not significant. For example, the balances in Cash Short and Over, Bank Service Charges, and Donations might be combined into one amount and presented on the income statement as Miscellaneous Expense.

Miscellaneous Expenditures are the incidental expenses which cannot be classified as manufacturing, selling, and administrative expenses. These expenses are not revenue in nature and hence shown in the asset side of the Balance Sheet and should be written off over a period of time. Example: Preliminary Expenses, Development expenditures and expenditure on raising of shares and debentures.

**MISCELLANEOUS EXPENSES IN BALANCE SHEET** Miscellaneous Expenditures are the incidental expenses which cannot be classified as manufacturing, selling, and administrative expenses. These expenses are not revenue in nature and hence shown in the asset side of the Balance Sheet and should be written off over a period of time. Example: Preliminary Expenses, Development expenditures and expenditure on raising of shares and debentures. Miscellaneous expenditure in the asset side of the balance sheet normally comprises of the following items. 1) Preliminery Expenses i.e.expenditure incurred to bring an enterprise into existence. 2) Expenditure on raising of shares and debentures including underwriting commission, brokerage etc and discount on shares and debentures. 3) Development expenditures. These expenditures are not revenue in nature and hence shown in the asset side of B/s., and should be amortised/written off over a period of time. Thanks

Miscellaneous Expenditures are the incidental expenses which cannot be classified as manufacturing, selling, and administrative expenses. These expenses are not revenue in nature and hence shown in the asset side of the Balance Sheet and should be written off over a period of time. Example: Preliminary Expenses, Development expenditures and expenditure on raising of shares and debentures. Profit and Loss Account debit balance : As per the business entity principle, owner is different from the business. Thus, the profit generated by the business belongs to the shareholders, and hence the business is liable to shareholders for the distribution of profits. In the same way, when loss is incurred in the business it is born by the owners. Hence, it is an asset for the business as it is a receivable from the owners.