A directors' remuneration is an expense to the company and as such, as per the accounting rules, is a payment to the director so the directors' remuneration account is debited. As cash is going out of the business upon payment to the director, the company's cash account is credited.

In which sheet the remuneration of the director is shown?

Director's Remuneration Shown in the Income Statement

In case if the director is an employee then all expenses related to him/her may be included under the head “Employee Benefits A/C”.

What is directors remuneration in accounting?

What is directors' remuneration? Directors' remuneration is the way that directors of a company are compensated, either through fees, salary, or through other benefits with approval from the company's shareholders, the board of directors, and in some circumstances, designated committees.