Sundry expenses definition

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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

Example of Sundry Expenses

Fred Mart, a small grocery store, records various operating expenses. Most costs, like rent, salaries, and inventory purchases, are categorized under specific expense accounts. However, some small, irregular, or infrequent expenses don’t fit into major categories, so they are recorded as sundry expenses. Here are several examples of sundry expenses incurred at Fred Mart:

  • Donations to a Local Charity – A one-time $50 donation to a community event.

  • Bank Service Charges – A $15 fee for processing a wire transfer.

  • Casual Staff Refreshments – Buying coffee and snacks for employees ($30).

  • Small Repairs and Maintenance – Fixing a store shelf for $25.

  • Postage Costs – Mailing invoices to suppliers ($10).

These expenditures are considered sundry expenses, because they are low-value items that do not warrant a dedicated expense category.

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.