In departmental accounts, administrative expenses are recorded in the?

A. trading account
B. balance sheets
C. profit and loss account
D. profit and loss appropriation account

Correct Answer: Option C

C. profit and loss account

Explanation

Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales. These expenses are related to the organization as a whole as opposed to an individual department. Expenses included in the profit and loss account are Selling and distribution expenses, Freight & carriage on sales, Sales tax, Administrative Expenses, Financial Expenses, Maintenance, depreciation and Provisions and more.