Miscellaneous refers to a collection or a group, in accounting, it refers to an income statement account for expense items that are too insignificant to have their own separate general ledger account.
A business firm spends money for various types of expenses. Normally, the account heads are assigned to those expenses which are repeatedly incurred. But there some expenses for which no account head is created because of very few transactions for a certain expense. If an accountant creates individual account heads for such type of transactions, then it will be very difficult to control. Therefore, all these expenses are booked under miscellaneous expenses account or general expenses accounts. Refreshment expenses, conveyance expenses, meals, postage, etc. are included in miscellaneous expenses.
How miscellaneous expenses are treated?
Miscellaneous expenses are recorded on the asset side of the balance sheet, after current and fixed assets. Miscellaneous expenditure in the asset side of the balance sheet normally comprises of following items:
Preliminary expenses i.e. expenditure incurred to bring an enterprise into existence.
Expenditure on raising shares and debentures
These expenses are not revenues in nature and hence shown in the assets side of the balance sheet, and should be amortized over a period of time.