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Thread: Sundry Accounts

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    Full Member Simimano's Avatar
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    Lightbulb Sundry Accounts

    Good morning!

    A sundry account is where different small or infrequent costs(expenses) that does not have an individual ledger account but are classified as a group,

    Now is that like Stationary, water and electricity, Telephone bills? Or...?

    Thanks!

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    Bronze Member Elijah's Avatar
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    What accounts or expenses one decides to classify as "sundry" will really depend on the nature of the business. You need to ask yourself 2 questions when making this decision 1. What would the estimated monthly bill be for this particular expense? 2. What level of control will I need to exercise over this expense? Electricity and telephone bills can reach very high monetary amounts and both subject to abuse, so personally, wouldn't classify these as sundry. Most businesses dont use much stationery and this may account for less than 5% of your total expenses [this would justify been a sundry account]. Another candidate for the sundry account would be things like purchasing coffee/sugar etc.

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    Full Member Simimano's Avatar
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    So in other words it is debatable?

    Insurance should be a fixed amount though, right? And it doesn't exactly have an account of its own..Monthly premium payment?

    Its a little confusing though because all the subjects on its own are debatable in that case, The questions you posted are helpful though.

    Do you think insurance can be classified as Sundry?

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    Bronze Member Elijah's Avatar
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    Depends what you insuring. If you insuring a cellphone - Sundry. If you insuring a machine worth millions - definitely not sundry

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    Full Member Simimano's Avatar
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    Well It is insurance for the business. I will try and figure out which is which though, I've got an idea now, So thanks.

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    Platinum Member Mike C's Avatar
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    Hi Simamano - one of the reasons why you put your various expenses into different accounts is so that you can see, at the end of the year, how much was spent on each particular item. This helps you in your budgetting and gives you a quick idea of where your big expense items lie.

    When you put a whole bunch of stuff into sundries - it can build up quite quickly. At the end of the year your boss may ask you for a breakdown of Sundries. To then have to spend time separating everything can be quite a chore.

    Printing and Stationery are usually kept as one account but separate from sundries.
    Courier and Postage are also kept together but separate from sundries.
    Insurance is usually kept separate.
    Water and electricity are usually kept together as a separate item.

    If your bookkeeping system is simple, you can lump stuff together. The more your business develops the more you will need to keep various items separate.
    An education isn't how much you have committed to memory, or even how much you know. It's being able to differentiate between what you do know and what you don't. - Anatole France

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    Bronze Member Elijah's Avatar
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    If you get really technical, you will perhaps discover that there is no cost/expense that will qualify as a sundry account. as I mentioned earlier it really depends on the circumstances.

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    Full Member Simimano's Avatar
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    Thanks for the info Mike C, But I am sitting with the total receipts in the sundry account and the total payments, I have a list of items I need to sort and decide which goes into the sundry, the rest..Well we might as well imagine that it doesn't exist. I have the amounts for both receipts and payments, they are quite high, In other words I have the end amounts but I don't know what needs to go in sundry to get there..Which is why I thought what I had mentioned in the first post would go in sundry, since they are groups not individual accounts?

    Which is why..I am confused.

  9. #9
    Bronze Member Elijah's Avatar
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    Are you doing the books for a client or is it your own business? Is this a small/medium sized business or a large Corporation?

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    Full Member Simimano's Avatar
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    Elijah, I am a student, This question is task related..As I am looking to further my knowledge and understand this, I have lots of accounting study material I need to complete, So I am just trying to get answers for myself to then understand everything perfectly.

    The business is a store, with the costs it could be quite a large corporation, if not medium.

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