Hospitality Business Toolkit (Unit-04)

Hospitality Business Toolkit (Unit-04)

Table of Contents
INTRODUCTION.......................................................................................................................................3
TASK 1.......................................................................................................................................................3
P1............................................................................................................................................................3
P2............................................................................................................................................................4
P3............................................................................................................................................................7
TASK 2.......................................................................................................................................................8
P4............................................................................................................................................................8
P5..........................................................................................................................................................10
TASK 3.....................................................................................................................................................11
P6..........................................................................................................................................................11
P7..........................................................................................................................................................12
TASK 4.....................................................................................................................................................13
P8..........................................................................................................................................................13
P9..........................................................................................................................................................14
CONCLUSION.........................................................................................................................................15
REFERENCES..........................................................................................................................................16

INTRODUCTION
Hospitality sector is wider category of areas within service sector that involves food
services, theme parks, lodging, transportation and event planning. It is one of leading sector that
contributes towards economy of country. It offers wide range of the series to attract the
customers and make them loyal towards company (Aragon-Correa, Martin-Tapia and de la
Torre-Ruiz, 2015). East London Catering is a catering organization that specialized events like
weddings, family gatherings and birthday parties. In this given report will be discussed about
double entry book keeping system of credits and debits to record the sales as well as purchases
transaction in general ledger. There will be included about the different stages of HR life cycle
and also importance of sustaining talent.
TASK 1
P1
Financial performance is explained as degree to which an organization can effectively use
assets to help generate high revenues (Ariza-Montes and et. al., 2017). There are various
principles that provide guidance for monitoring and financial performance management. To gain
benefit of minimized expenses, financial accounts are created. East London Catering
organization records the source documentation of daily receipts and vouchers received during the
purchase and sale of raw materials. In addition, the company's financial reporting process
requires. Each organization needs to manage as well as control its finances so that its costs are
minimized and cash flows are monitored for these different financial statements. There is various
principles financial performance management mention below:
Maintain proper records of stock
Chan and Hon (2020) stated that principle is based on preserving and establishing
accurate records of raw materials and other important purchases made through an organization.
This offers East London Catering knowledge about waste during the purchase and storage
process of the inventory.

Making key financial statement reports- This principle is based on the development,
with view to an overview of the company's existing financial performance, of key financial
statements like profit & loss and balance sheet. East London Catering would be able to build
awareness of these areas through preparing these reports, which helps the company to increase
its output next year.
Evaluating the overhead cost- This principle aims to gain insight into an entity's
additional expenditure in addition to organizational expenditures. East London Catering will
calculate the costs of these expenses which can be reduced in next year to lower the operating
costs and increase profit margins by keeping all additional expense records.
P2
This is system in which each account entry requires a matching, opposite account entry.
Two equal as well as corresponding sides of the double entry are called debit and credit. The left
is debit and the right is credit. Three principles are established in this system, such as separate
entity in which East London Catering has a legal entity independent from its owner. Other
principle is the accounting equation, which says Assets – Liabilities= Capital The third rule
states that each transaction has a dual effect on dual transaction (Häusler, 2017).
Double entry book keeping