Importance of Legislation in Business

Hospitality Business
Toolkit

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Influence the principles of monitoring financial performance..........................................3
P2 Usage of double entry book system to record transaction in ledger.................................4
P3 Prepare a trial balance by using balance off rule to complete the ledger..........................5
TASK 2..........................................................................................................................................11
TASK 3..........................................................................................................................................11
P6 Describe importance of legislation and its types in relevance with business situation...11
P7 Explain the decision making and how it is affected by company and contract law........12
TASK 4..........................................................................................................................................13
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Hospitality industry is wide and involve many sectors such as Food and beverages.
Accommodation, recreation, entertainment and many more. The services include in hospitality
industry is event planning, lodging, transportation and many more (Singh, 2015). The present
report is based on The Ritz London, which is a 5 star hotel and situated in Piccadilly, London. It
was established in the year 1906 by Ellerman Group. It has 3 restaurants, 110 rooms and 23
suites which is designed in a unique manner. The report covers various aspects of financial
management that assist in carrying out functions in smooth manner. Along with this, Human
Resource life cycle is discuss in order to gain an insight regarding ongoing activities of hotel.
Moreover, performance management plan is described and the various method of communication
is discuss in detail in the report.
TASK 1
P1 Influence the principles of monitoring financial performance
The principles are a set of plans that aid a business to attain predefined goals and
objectives in a right manner. It is essential for each organisation that acquires and directs rules
that are indicated within an industry. In finance department the accounting principles plays a
very essential role so that the problems and disputes are decreases that are taken into
consideration within an appropriate manner. The few principles are categorised as follows:
 Inventory Records: in an organisation. The large amount of transactions and vast cost
which is included such as buying of raw materials, machines, tools, equipment’s and so
on. Various business entities that plays a various role in business activities that are
performed to form record of stocks in such a way that values in proper time manner and
also inventories are ascertained through recording (Nelson, 2018). This also helps a
business to examine their needs and requirements to form a business to ready for future
potential. In context to The Ritz London that uses the recording of stock and also keep
appropriate records of procedure that assist in relation among utilised and non-utilised
resources.
 Time management: Time management is very essential in performing financial
transactions. The favourable principle of right time that lead to examine the level of
performance within a particular period of time. Further, it considers as the analysing the

total growth and development of an organisation. With reference to The Ritz London it
utilise the principle of time management in an efficient and effective manner that gives
services to its customers within specified a period of time in such a way to that the
customers do not have to stay for providing the services. This results in the good
relationship among business and its customers.
 Staff, food and labour cost: While display and controlled the level of performance of a
business that it is very crucial to manage the cost of food, labour and members of a team
in an industry. These costs moves according to the financial performance that lead to
impact on the services which are given by an organisation. In addition to this, the food
costs are mostly depends upon the taste and preferences of team members which are high
because training are included in this cost as well as labour cost is depends according to
the needs and location of a company. In context to The Ritz London, this hotel manages
the costs for the functions of a business in an suitable manner that carries various actions
in a continuous manner. This lead to involve all the costs that assist to control and keep
the performance of a finance in a business.
P2 Usage of double entry book system to record transaction in ledger
Accounting is a broad and wide conception that consists of important part of a business
industry. A book keeping and double entry system are very crucial in functioning and operational
of accounting. In assistance to this, both the entries like book keeping and double entry plays a
very important role for recording each and every transaction in a business. Further, these two
methods interpret the debit account is balanced to credit amount in such a way the outcomes is
acquired in an appropriate manner. These are described as follows:
 Principle of revenue: This is the principle which indicates the income which is created
in a business that is recorded in book -keeping in an ordered manner. This would assist
because a proper assessment is finished when the incomes are divided balanced in a
business (Lub, 2016). In assistance to The Ritz London, this company could precedes
the principle which includes skilled and trustworthy employees.
1. Principle of understanding different accounts: There are various forms of accounts
which are included such as real, personal and nominal accounts that consist of
accounting transactions that could generate several concepts of accounting. Hence, this