In departmental accounts, administrative expenses are recorded in the

In departmental accounts, administrative expenses are recorded in the profit and loss account. The profit and loss account is used to calculate the net profit or loss of a business over a specific period. It includes all the revenue and expenses incurred by the business, including the cost of goods sold, operating expenses, and any other income or expenses. Administrative expenses are expenses that are incurred in the general management of a business, such as salaries, rent, and utilities. These expenses are recorded in the profit and loss account, along with all other expenses and revenue, to determine the net profit or loss of the business.