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In departmental accounts, administrative expenses are rec...

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 is C

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.