Introduction to bookkeeping system of debits and credits in business

HOSPOTALITY
BUSINESS
TOOLKIT

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
1.1 Introduction to the financial transactions by identifying types of source document and
recording processes of concerned business............................................................................4
1.2 Principles of double entry bookkeeping system of debits and credits..............................4
1.3 Demonstrate need for accounting report and prepare a trial balance along with its purpose
................................................................................................................................................5
1.4 Analyse types of cost and how they can be managed to influence financial performance of
business...................................................................................................................................6
1.5 Evaluate importance of accurate recording of transaction in line with accepted accounting
principles................................................................................................................................7
1.6 Critically evaluate role of financial management and monitoring in achieving positive
growth in business with some recommendations...................................................................7
TASK 2............................................................................................................................................8
2.1 Overview of the issues in talent acquisition and retention with food & beverage sector 8
2.2 Relate factors to a specific hospitality job in food and beverage sector..........................8
2.3 Identification of specific legislations that hospitality organisations has to comply. How it
reflect on employment contract and its impact on decision making......................................9
2.4 Stages of HR life cycle and importance of HR in supporting, growing and retaining talent
for a specific job role............................................................................................................10
2.5 Develop a performance management plan to support specific job role.........................10
2.6 Make recommendations on how processes and documents at each stage of HR life cycle
can be improved...................................................................................................................11
TASK 3..........................................................................................................................................12
( Covered in PPT ) ...............................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES .............................................................................................................................13

INTRODUCTION
Hospitality industry is a big sector under service industry which involves event planning,
transportation, lodging, transportation, theme parks, travelling, cruise line and other fields within
tourism industry. A business toolkit is specified as a business training guide which helps in
developing a successful business within business world (Jayawardena and et. al., 2013). It
reviews common business practices and offer practical tools to overcome challenges that acts as
a barrier in business growth. For this assignment, Portobello cafe is the chosen firm which is a
thriving business enterprise, situated in Bishops gate, London. Cafe offers healthy salads and
fresh juice. This assignment will cover information regarding financial transactions, double entry
bookkeeping of credit and debit, need for accounting report and impact of cost on financial
performance of business. Beside this, issues in talent acquisition and legislations that firms have
to comply have mentioned. HR life cycle and performance management plan is also discussed.
At last, different functional roles and communication methods are specified along with way in
which different communication methods integrate different functions.
TASK 1
Portobello cafe is a new cafe launched in Bishops gate, London. Cafe specialises in
offering healthy salads, smoothies and juices to its customers. Nearby cafe, a gym is also opened
up due to which a new opportunity has emerged. To expand their business sales, manager of cafe
have decided to offer range of juice and smoothies by blending them with alcoholic spirits. This
will be a healthy alternative for peoples.
1.1 Introduction to the financial transactions by identifying types of source document and
recording processes of concerned business
Financial transaction is defined as a communication or an agreement between seller and
buyer to exchange a good in return of payment. It results in changing the financial status of two
or more individuals which are concerned with the agreement. There are various kinds of source
documents and recording processes which helps a firm in identifying their financial transactions.
In case of Portobello cafe, source documents and recording processes are mentioned below:
Source documents and recorded processes: These are specified as physical basis
according to which each business transaction is recorded. These are the evidences when financial
statements of a company are reviewed by auditors. It includes description and date of business

transactions, specific amount of money and authorised signatures. Source documents for
concerned companies are cash register tape, credit card receipt, packing slip, bank statement,
supplier invoice, time card, sales order etc. Recording processes of Portobello cafe will include
source documents, general journal, general ledger and trial balance (Kysilka and Csaba, 2013).
1.2 Principles of double entry bookkeeping system of debits and credits
Double entry bookkeeping is a system in which each business transaction is recorded
twice within a book. This financial tactics assures that the value and amount added in debit side
is equal to the amount which is specified on credit side. This system will benefit Portobello cafe
in determining their profits and expenses in a proper manner.
Principles associated with double entry bookkeeping systems:
 Each transaction includes two parties i.e. credit and debit. Every debit amount develops
credit and every credit creates corresponding debit for same amount.
 In every transaction one person is receiver and other is giver.
 Amount of capital given by receiver matches with amount of capital received by giver.
 All transactions are divided in two aspects i.e. debit and credit.
Particulars Debit Credit
Cash in hand (Overdraft) 10700
Petty cash expenses 750
Cash sales 3350
Credit card sales 14795
Free issues 575
New kitchen equipments 6540
Food purchase 7900
Beverage purchases 12970
Purchase return 200
Discount received 2300