Concept:Administrative, selling and distribution expenses are operating expenses of a business, not part of factory cost.
Explanation:The manufacturing account records only factory or production costs, such as raw materials and direct labour.
The trading account calculates gross profit by recording sales and the cost of goods sold.
The profit and loss account records all indirect expenses like administrative, selling, and distribution expenses to arrive at net profit.
The balance sheet shows assets and liabilities, not revenue expenses.
Therefore, these expenses appear in the profit and loss account.
Answer:C. profit and loss account