Professional Documents
Culture Documents
Hotel Accounting
Chapter 1
Review of Accounting
Objectives
BOOKKEEPING
Only a part of
accounting
Mechanical part of
accounting
Use double entry
system
Owners
Managers
Creditors/Bankers
Investors
Employees
Government
Consumers
Students
Importance of Accounting
Information
in Hotel Organization
Government
legislation
Greater emphasis on
financial matters
Audit purpose
Management decision
making
Accounting Process
Transactions
Source
Documents
Classifying &
Recording
Yes
Ledgers
Trial Balance
Adjustments
No
Financial
Statements
Journals
Owners
Equity
Liability
Revenue
Balance Sheet
Expense
Income Statement
Assets
Assets represent
resources of value
owned by the business
entity
Current Assets
Cash or other assets likely to be turned into
cash within a year
Cash in Hand
Cash in Bank
Credit Card
Receivables
Accounts Receivable
Marketable Securities
Inventories
Prepaid Expenses
Fixed Assets
Non-current, nonmonetary tangible assets
used to support business
operation
Land
Building
Furniture and Equipment
Accumulated Depreciation
Vehicle
Other Assets
Assets that do not fit
into either current assets
or fixed assets
China, Glassware, Silver, Linen,
Kitchen Utensils & Uniform
Deposits
Investments
Leasehold Costs
Leasehold Improvements
Deferred Expenses
Liabilities
Represent debts or obligations owed by the business entity
Current Liabilities
Those debts that must be paid
or are expected to be paid
within a year
Accounts Payable Trade
Accrued Expenses
Income Tax Payable
Deposits and Credit Balances
Current Portion of Long-term
Mortgage
Bank Overdraft
Long-term Liabilities
Those due more than one year
after the balance sheet date
Mortgage
Bonds
Debentures
Notes Payable
Owners Equity
Represents the equity or the interest of the owners in the enterprise
Owners Equity = Assets - Liabilities
Capital Stock
(Common stock /
Preferred stock)
Capital Surplus
Retained Earnings
Try this!!!
Classify these accounts into the right
groups of accounts
Commission receivable
Mortgage
Equipment
Utility deposits
Commission revenue
Payroll expense
Inventory
Common stock
Mortgage payable
Trade Debtor
Trade Creditor
Leasehold
Leasehold improvement
Amortization
Withdrawal
Supplies expense
Prepaid insurance
Deposit from customers
Exercise 1
Journalize the following transactions:
Started business with RM50,000 cash and motor vehicle at
RM30,000 cost.
Bank in RM35,000 cash into bank account.
Paid advertizing expenses RM5,000 by cash.
Purchase building using loan from Maybank RM200,000.
Paid creditor amount due RM8,000 by cheque.
Debtor paid amount owing RM3,000 by cash.
Owner took RM2,000 cash for his own use.
Bought motor van RM20,000 by cheque.
Paid stationery RM1,000 by cash.
Monthly instalment payment of loan RM3,000 by cheque.
Paid shop assistant salary RM1,500 by cash.
Paid electricity bill RM500 by cash.
Exercise 2
Cash
$52,980
Credit card receivable
620
Prepaid insurance
3,450
Food inventory
3,200
Beverage inventory 1,175
Building
150,000
Acc. Depreciation bldg
400
Equipment
12,000
Acc. Depreciation equip.
125
Accounts payable
16,200
Sales revenue
24,900
Cost of sales
$11,225
Wages expense
3,800
Salaries expense
2,280
Utilities expense
282
Miscellaneous expense
818
Insurance expense
150
Depreciation expense
525
Payroll payable
880
Notes payable
100,000
Capital
100,000
Exercise 3
Salary expenses
$52,850
Accounts receivable 77,350
Capital
1,300,000
Food sales
315,450
Accounts payable
85,400
Advertizing expenses
6,500
Cash
20,700
Retained earnings 77,500
Beverage sales
67,250
Unearned revenue
9,050
Insurance expenses 11,800
Utility expenses
35,000
Cost of F&B
130,000
Rent expenses
$18,000
Prepaid insurance
4,900
Drawings
10,060
Mortgage
53,250
Prepaid rent
9,000
F&B inventory
10,850
Telephone expenses 4,800
Land
950,000
Building
520,000
Overdraft
71,660
Kitchen equipment 75,500
Office equipment
44,250
Accrued wages
2,500
Problem 1
Problem 1
Description
Cash in Bank
Ref.
Dr
Cr
5,000
2,500
2,500
Description
Cash in Bank
Notes Payable
[Borrowed $10,000 from bank]
Ref.
Dr
Cr
10,000
10,000
Description
Rent Expense
Cash in Bank
[Paid first month's rent]
Ref.
Dr
Cr
1,000
1,000
Description
Purchases
Cash in Bank
[Purchased food inventory]
Ref.
Dr
Cr
1,800
1,800
Description
Cash in Bank
Ref.
Dr
4,500
150
Accounts Receivable
250
Sales
[Week's sales]
Cr
4,900
Description
Prepaid Insurance
Cash in Bank
[Purchased fire insurance]
Ref.
Dr
Cr
960
960
Description
Land
Ref.
Dr
Cr
10,000
Cash in Bank
2,000
Mortgage Payable
8,000
[Purchased land]
Description
Ref.
Dr
Drawings - Montcalm's
1,000
Drawings - Ricardo's
1,000
Cash in Bank
[Partners' withdrawals]
Cr
2,000
Description
Drawings - Montcalm's
Purchases
[Partners' withdrawal]
Ref.
Dr
Cr
50
50
Description
Cash in Bank
Accounts Receivable
[Received payment on open account]
Ref.
Dr
Cr
80
80
Description
Utilities Expense
Accrued Utilities
[Receipt of electricity invoice]
Ref.
Dr
Cr
164
164
Description
Salaries Expense
Cash in Bank
[Paid cook's wages]
Ref.
Dr
Cr
480
480
Description
Accrued Utilities
Cash in Bank
[Paid electricity invoice]
Ref.
Dr
Cr
164
164
Description
Utilities Expense
Cash in Bank
[received and paid water invoice]
Ref.
Dr
Cr
40
40
End
Certificate of shares/partnership
agreement
Bank statement
CLASSIFICATION OF ACCOUNTS
Assets
Owners
Equity
Liabilities
Current
Assets
Capital
Fixed
Assets
Long-term
Profit/Loss Liabilities
Other
Assets
Capital
Surplus
Retained
Earnings
Current
Liabilities
Revenues
Room
Sales
F&B Sales
Other
Income
Expenses
Variable/
Direct
Expenses
Fixed/
Indirect/
Overhead
Expenses
Drawings
Acc Process
Journal
Exercise 1
Description
Bank
Ref.
Dr
Cr
50,000
Capital Ms.
Lavender
Capital Mr. Porto
25,000
25,000
Capital Ms. L
Capital Mr. P
25,000
Bank Account
25,000
25,000
50,000
Bank
25,000
Bank account
50,000
25,000
25,000
Financial Statements
Income Statement
Revenue
- Expenses
= Income/Profit
Balance Sheet
Assets
O. Equity
Liabilities
Received RM10,000 cash from Mr. MM for annual dinner function held.
Dr
Cash 10,000
Cr
Sales
10,000
Cash
Cr
5,000
Unearned revneue
5,000
Received the RM5,000 cash for balance of charges for the annual dinner
function.
Dr
Cash
5,000
Unearned revenue 5,000
Cr
Sales
10,000