When any amount received by a firm which can not be classified under some specific account head, that receipt will booked under miscellaneous income. In other ways, the amount of receipt which is not of repeated nature, can be shown under miscellaneous income. For example:- dividend received, display charges received, incentives received for a special achievement,  special awards received, income from lotteries etc. For control purpose the separate account heads can be opened for some specific income.

Miscellaneous incomes are part of  indirect incomes, therefore, these incomes are shown in income side of profit and loss account. Any amount earned  relating to miscellaneous incomes but not received at the time of preparation of final accounts, will be added in miscellaneous incomes and receivable amount will be shown in assets side of balance sheet.

Accounting Treatment of Miscellaneous Incomes

a) In case of receipt of income in cash or by cheque:-

Type of voucher to be prepared:- Receipt Voucher

Entry to be made

Debit:- Cash Account


Bank Account

Credit:- Miscellaneous Incomes Account

b) In case of income earned but not received:-

Type of Voucher to prepare:- Journal Voucher

Entry to be made

Debit:-   Miscellaneous Incomes Receivable Account


Personal Account of Creditor

Credit:-  Miscellaneous Incomes Account