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
Explanation
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 individualdepartment. 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.