Miscellaneous expense is often a general ledger account in which very small amounts are recorded. Generally it is best not to use this account. If another account does not seem appropriate, consider opening a new account to capture the expenses. For example, a $10 donation would be better recorded in an account Donations rather than in Miscellaneous Expense. Checking account fees would be better recorded in Bank Service Charges rather than Miscellaneous Expense.

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.

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