**Calculation of Remuneration of Managing Director @5% of Net Profit**

The remuneration of a managing director is an important aspect of corporate accounting. It is usually calculated based on a percentage of the net profit earned by the company. In this case, we need to calculate the remuneration of the managing director at 5% of the net profit.

To calculate the remuneration, we need to follow a few steps:

**Step 1: Determine the Net Profit**
- Net profit is calculated by subtracting all the expenses incurred during the accounting period from the total revenue generated by the company.
- The net profit can be found in the income statement or the profit and loss account of the company.

**Step 2: Calculate 5% of Net Profit**
- Once the net profit is determined, we can calculate 5% of it.
- This can be done by multiplying the net profit by 0.05 (which is equivalent to 5%).

**Step 3: Determine the Remuneration**
- The result obtained from Step 2 represents the remuneration of the managing director at 5% of the net profit.
- This amount is set aside as the remuneration for the managing director.

**Example:**
Let's consider an example to illustrate the calculation.

Assume that a company has a net profit of $500,000 for the accounting period.

- Step 1: Determine the Net Profit
Net Profit = $500,000

- Step 2: Calculate 5% of Net Profit
5% of Net Profit = $500,000 x 0.05 = $25,000

- Step 3: Determine the Remuneration
Remuneration of Managing Director = $25,000

Therefore, in this example, the remuneration of the managing director would be $25,000.

It is important to note that the percentage of remuneration can vary depending on the company's policies and agreements. Additionally, there may be certain restrictions or regulations imposed by the relevant laws and regulations governing corporate accounting. Therefore, it is essential to consider these factors while calculating the remuneration of a managing director.