Concept:Administrative expenses are general business running costs that are not directly linked to production or sales.
They appear in the statement used to calculate net profit.
Explanation:Departmental accounts first calculate gross profit in the trading account.
Then all operating expenses are recorded in the profit and loss account.
Administrative expenses belong to the organisation as a whole, not to any one department.
These expenses are deducted from the gross profit to arrive at net profit.
Therefore, they are shown in the profit and loss account.
Answer:C. profit and loss account