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

The correct answer is C. profit and loss account

Administrative expenses are the expenses that an organization incurs not directly tied to a specific function such as manufacturing, production or sales. Theseexpenses are related to the organization as a whole as opposed to an individualdepartmentExpenses 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.

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