Concept:The profit and loss account records revenue and expense items of a company to determine net profit.
It does not include appropriations of profit or capital transactions.
Explanation:Director's remuneration is an administrative expense paid for the services of directors.
It is a regular business expense, so it is found in the profit and loss account.
Proposed dividends are not an expense but a distribution of profit, so they appear in the profit and loss appropriation account.
Transfer to general reserves is also an appropriation of profit, shown in the appropriation account.
Proceeds from issue of shares is a capital receipt, recorded in the balance sheet.
Hence, the correct item belonging to the profit and loss account is director's remuneration.
Answer:C. Director's remuneration