Credit means generally in accounts it refer revenue to the
company or business or organization. Normally every credit has to be accounted
for in the respective head of account as per the nature of the revenue.
Sometimes it may not be possible to find out for what
purpose the amount has been credited or the head of account for which the
credit has been received. It may be due to human error or machine error. Under
such circumstances the amount for which the credit has been received will be
accounted for under the head of account “unclassified credits” temporarily.
After making necessary enquiries the amount will be taken to
correct head of account. However there is a limit for keeping the amount under unclassified
credits. Even if the credit is not able to be traceable even after three years
then the credit available under unclassified credit will be taken as
miscellaneous revenue to the company or organization or business.
