Hospitality Businesses Toolkit: Report

Hospitality Businesses
Toolkit

INTRODUCTION
Hospitality sector define various industries including food, drink, event management and
planning, travelling, transportation and the fields related to hotel and tourism industry.
Disposable income and leisure time of individuals decide the spendings over this sector. The
hospitality business mainly focuses on rendering services to consumers, to full-fill their
expectations. This sector earn profit whole year but mostly in summer time tourist like to travel
more. This report is based on ABC catering, a hospitality industry that is specialised in events
such as birthday parties, family gathering and weddings (Al Rayes and Kayiaseh 2017). To
operate catering service the financial performance is monitored and trial balance, general ledger
rules are required to follow here. This report will cover HR life cycle's role and importance to
retain and develop new talent and also some specific legislations that a organization should
follow will be explained further.
Task 1
P2. Investigating principles associated with management along with monitoring financial
performances.
Financial management defined as wider activity in an organisation. It involves procedures
including planning, organizing, controlling monetary funds for achieving the organisation goals
and objectives(Bohdanowicz and Zientara, P., 2015). Managing and monitoring the financial
performance is effective in term of increasing the value of firm and this also helps in setting
clear goals in organisation. For managing and monitoring financials performance in ABC
catering some of the principles are mentioned below:
Consistency: In ABC catering for measuring the performance there should be stability in
financial transaction. Transaction should be maintain in a regular basis. In this context, when
ABC catering adopt an accounting principle or method than they make sure that the method
should be apply regularly in future accounting period. By applying new method company can
change its old method.
Timeliness: In this context, timeliness is defined as the term in which accounting
information should be presented to the user at the time of requirement to take the decision. This
timeliness is important to protecting users important financial information. Timeliness principle
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is closely related to the relevance principles. In ABC catering transaction should be done on
time.
Proper Education: it is very important to have the knowledge of work which is
operated in organisation. In this context, manager should have the proper knowledge about the
work and read more books to get the knowledge about its work. Read every finance periodically
is beneficial for ABC catering in term getting the best opportunities on investment in the
market(Bowie and et. al., 2016)
Organize finance: This is considered as the first step of creating wealth. In this context,
credit cards, bank accounts, personal loans and retirement accounts should be tracked.
Budgeting software provide the complete solutions to track all accounts, make on time payment
or more.
Understand risk: Organisation face various risk so its important for manager to
understand that risk appropriately . In ABC catering the manager is not always sure about
investment that it will not create the risk for organisation. (Brown and et. al., 2017).
P2. apply the double entry book-keeping systems of debit and credit to record sales and
purchase transaction in general ledger.
Accounting is defined as the procedure in which is systematic and record of financial
transaction related to the business. This is also known as the process of summerizing,
analysing and reporting this transaction. In the system of accounting it is deal with two and
more the two transaction of a business. This gathered the proper and full information about the
services and products, expenses, debt, loans, income, etc. In this context ledger include accounts
of every liability and asset. The double entry system required two entries for a debit and credit
transaction. In ABC cater any purchases such as purchasing of assets and raw material
including payments from customers which is recorded in two places in the ledger system. This
company balances the total funds in the debit and credit accounts by using the equation given
below-
Journal Entries
Date Particulars Debit Credit
01/05/19
Cash a/c Dr
To Capital a/c 30000 30000
2

02/05/19
Store Rent a/c Dr
To cash a/c 1000 1000
03/05/19
Purchase a/c Dr
To Cash a/c 10000 10000
03/05/19
Purchase a/c Dr
To Account Payable a/c 15000 15000
04/05/19
Accident insurance policy a/c Dr
To Cash a/c 1200 1200
05/05/19
Purchase (food supplies)a/c Dr
To WH Adams Ltd a/c 8000 8000
05/05/19
Purchase (Beverages) a/c Dr
To WH Adams Ltd a/c 7000 7000
06/05/19
Laundry fees a/c Dr
To Cash a/c 200 200
07/05/19
telephone and internet a/c Dr
To Cash a/c 2220 2220
08/05/19
Rates, water charges and refuse a/c Dr
To Cash a/c 950 950
09/05/19
Wages and salaries a/c Dr
To Cash a/c 1740 1740
10/05/19
Food a/c Dr
To Sales a/c 20000 20000
11/05/19
Beverage a/c Dr
To Sales a/c 13000 13000
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Ledger:
Ledger
Accounts
Cash Account
Date Particulars £ Date Particulars £
01/05/19 To Capital 30000 02/05/19 By Store Rent 1000
03/05/19 By Purchase A/c 10000
04/05/19
By Accident
insurance policy
account 1200
06/05/19 By Laundry Fees 200
07/05/19
By Telephone and
Internet expenses 2220
08/05/19
By Rates, water
and refuse a/c 950
09/05/19
By Wages and
salaries 1740
31/05/19 By Balance c/d 12690
Total 30000 Total 30000
Purchase Account
Date Particulars £ Date Particulars £
03/05/19 To Cash 10000
03/05/19 To Account Payable 15000
05/05/19 To WH Adams Ltd 15000
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