ANSWER:

Sundry income is generated from sources other than a company's normal income-generating business operations. This INCLUDES any income not generated by the sale of the company's products and services.

Sundry income is LIKELY to be less predictable in nature than revenue from a business's primary operations because the associated activities are often irregular in nature and cannot be seen as guaranteed sources of income over the long term.

Sundry income must be recorded on financial statements and BALANCE sheets, as it has an effect on a business’s net worth and needs to be reported to shareholders.

How Sundry Income Works

Sundry income is a nonmaterial source of income and is generally trivial in relation to a company's income from operations. Even though sundry income may not make up a LARGE part of a business’s income, this does not mean the amounts are negligible. There is no limit to the amount of income that may qualify as sundry income because the defining characteristic is based on the irregularity of the fund source and not the amount of funds generated.