Unit 4: Financial Performance, HR and Legislation for Bourne Leisure

This report provides a detailed analysis of Bourne Leisure Limited's financial performance, focusing on financial statements, ledger accounts, and trial balances. Part A investigates the principles of managing financial performance, including the preparation of financial statements, inventory records, and cash flow statements. Part B reviews the HR lifecycle stages, specifically focusing on the accounting job role, and outlines the importance of recruitment, onboarding, development, retention, and offboarding. The report also examines relevant legislation that hospitality organizations must adhere to, including potential implications of employee welfare and the interrelation of different roles within the hospitality sector. The report concludes with a summary of the key findings and their implications for Bourne Leisure Limited's overall success and financial health, including analysis of cost classification (direct and indirect costs), accurate transaction recording, and the role of financial management in achieving growth.

UNIT 4 - HOSPITALITY
BUSINESS TOOLKIT

Table of Contents
INTRODUCTION..........................................................................................................................3
PART A..........................................................................................................................................3
Investigate the principles of managing and monitoring financial performance.........................3
Ledger Accounts in the books of Bourne Leisure Limited.........................................................4
Trial balance of Bourne Leisure Limited as of 31 January 2020................................................6
PART B.........................................................................................................................................12
Reviewing the different stages of H.R. life cycle related to Bourne Leisure Limited..............12
Development of performance plan of Bourne Leisure Limited with the accounting job role..13
Specific legislation(s) that hospitality organisations have to comply and adhere to in the daily
transaction of business:.............................................................................................................15
Potential implications of employee’s welfare using legislatures..............................................16
Different roles in the hospitality sector and how they are interrelated.....................................17
CONCLUSION.............................................................................................................................18

INTRODUCTION
The current report will discuss the financial statements of the hospitality industry by
double-entry bookkeeping system along with ledger accounts and trial balance. The chosen firm
for this report is a U.K. based firm Bourne Leisure Limited. The report will be identifying the
types of sources document and recording processes and then investigate the principles of
managing financial performance. It will further represent the different stages of the H.R. life
cycle and its importance by making a PDP plan. It will further explain specific legislation that a
hospitality organisation has to comply with. Along with this, the report will be underlying the
importance of coordinating and integrating various functions of the department in Bourne
Leisure Limited.
PART A
Investigate the principles of managing and monitoring financial performance
Financial performance is the process of measuring firms overall financial health over a
given period. It also measures the policies of a firm’s and operations in monetary terms. It
includes the preparation of the income statement, which shows the profitability and financial
soundness of the business. There are many ways to control the financial performance of the
business, some areas underlying below:
 Preparation of Financial statements: Every company needs to prepare these
statements for calculation of financial performance at the year-end and financial
position as on the date of the firm. These statements give an overview of the
financial health of the organisations. Along with this, internal and external users
of the business will also use these statements for finding out the firm's
profitability and liquidity.
 Preparation Of Inventory Records: These records will help in finding out
overall purchases, work in progress and final products of stock used in
production. It also helps in the calculation of stock turnover ratios and
input/output ratios.
 Preparation of fund and cash flow statements: It implies the movement of
cash and cash equivalents in the business. It includes two aspects of cash inflow
& outflows of cash from different activities of the organisation. It Evaluates the

budgets of the past with present performance and analyse cash requirement for
the future.
Ledger Accounts in the books of Bourne Leisure Limited
Sample transactions in the books of Bourne Leisure Limited
Sr. No. Transactions
1 A proprietor J.K. begins a business entity called Bourne Leisure limited started
business on 1 January by Initial investment of cash £15000, Building £25000, bank
£30000
2 On 2 January, Purchase former restaurant building for £25000 on account of ram
furniture’s limited, paying £15000 in cash at the same time
3 On 5 January, Purchase Raw materials for production of Soft drinks, juice and food
£2000 and beverages for £2500 in cash
4 On 8 January Paid salaries to its staff of £1400
5 On 10 January paid cash to ram furniture’s
6 Sell food and beverages for £150000 On 12 January
7 Paid Electricity expenses on 15 January by £180 in cash
8 The deposit amount of £1700 into the bank on 17 January
9 Utility Expenses paid by the bank of £390 on account of 19 January
10 Let out three rooms on 21 January and charge from them from £4200 amount
received in cheque
11 His furniture purchased for £1200 on credit on 28 January from Hari limited.
Journal Entries in books of Bourne Leisure Limited
Date Particulars L/F Debit($) Credit($)
01/01/20 Cash A/c Dr
Building A/c Dr
Bank A/c Dr
15000
25000
30000

To Capital A/c
(Being capital Introduced in business)
70000
02/01/20 Building A/c Dr
To cash A/c
To Ram Furniture A/c
(Being Building purchased and paid 15000 in cash)
25000
15000
10000
05/01/20 Purchase (Food & Beverages) A/c Dr
To cash A/c
(Being food and beverages purchase as raw
material for cash)
4500
4500
08/01/20 Salaries A/c Dr
To Cash A/c
(Being Salaries paid in cash)
1400
1400
10/01/20 Ram Furniture A/c Dr
To cash a/c
(Being cash paid to Ram furniture )
10000
10000
12/01/20 Cash A/c Dr
To sales A/c
(Being Food and Beverages sell to its customers)
150000
150000
15/01/20 Electricity A/c Dr
To Cash A/c
(Being Electricity paid in cash)
180
180
17/01/20 Bank A/c Dr
To cash a/c
(being Cash deposit in bank)
1700
1700
19/01/20 Utility Expenses A/c Dr 390

To bank A/c
(Being utility expenses paid by bank)
390
21/01/20 Bank A/c Dr
To Sales A/c
(being rooms let out and revived amount by
cheque)
4200
4200
28/01/20 Furniture A/c Dr
To Hari a/c
(Being Furniture purchased on credit)
1200
1200
Trial balance of Bourne Leisure Limited as of 31 January 2020
Account name Debit($) Credit($)
Cash A/c 132220
Building A/c 50000
Bank a/c 35510
Capital a/c 70000
Ram furniture a/c 0
Purchase A/c 4500
Salary A/c 1400
sales A/c 154200
Electricity Expenses A/c 180
Utility Expense A/c 390
Furniture A/c 1200
Hari Limited A/c 1200

225400 225400
 The financial accounts are used to report the financial results of companies
operation. It assists the institution to get details of its performance which can be
utilized to compare from previous data. With help of deviation in position, reasons
can also be evaluated that helps organization to formulate effective strategies. The
equation cycle is considered to be foundation of double entry system. It represents
that business's sum of assets is equal to total of liabilities and shareholder's equity.
 The concept of double entry system is used in financial statement so that
standardize procedure can be setup. In addition to this, it allows obtaining accuracy
and errors can also be rectified. It is a common practice that conducted by all types
and scale of firm so that actual performance of company can be attained respect to
this, it assists management of company to take check its market share and
competitors position as well.
Analysis and evaluation of cost that managed to influence the financial performance
Classification of cost
Direct Cost: Those costs which are directly attributable to the products, or services or
department of the business. It includes direct material, direct labour, and direct overhead cost.
Indirect Cost: Those costs which are not directly attributable or identifiable to the goods or
services or the departments of the business. For example, rent and utilities, salaries, other office
expenses.
The quoted firm Bourne Leisure Limited has incurred both direct and indirect cost at the
same time, which includes material purchases, Direct labour cost. Examples of Fixed cost are

land and building taxes, wages to employees, hotel employees health premium etc. The variable
cost of the firm is food and beverages, housekeeping, guest room amenities, laundry expenses
etc.
The chosen firm can use a solar water heating system for reducing electricity cost or
implement cost-effective tools for reduction of indirect costs, be mindful about utility cost; by
negotiating rents, the firm can diminish rental expenses. By using these strategies, the company
can increase its profit.
Importance of accurate Recording of transactions in line with accepted accounting
principles
Generally Accepted Accounting Principles (GAAP) provides standards for recording
business transactions and allows investors to evaluate companies for effective decision makings.
It will help in reducing the risk of misrepresentation and fraud.
Role of financial management and monitoring in achieving growth in Bourne Leisure
Limited
The finance manager plays a very vital role in the day to day activities of the business.
The main goal of this manager is to maximise the value of the firm to its owners. Mainly three
major decisions will take by this manager Investing, financing and dividend policy decisions.
The chosen manager will also perform five major functions- planning, organising, staffing,
leading and controlling in the organisation.
APPENDIX
Cash A/c
Date Particulars J/f Amount Date Particulars J/f Amoun
t
01/01/20 To capital A/c 15000 02/01/20 By Building A/c 15000
12/01/20 To Sales A/c 150000 05/01/20 By purchase A/c 4500
08/01/20 By salaries A/c 1400
10/01/20 By ram furniture A/c 10000
15/01/20 By electricity A/c 180

17/01/20 By bank A/c 1700
30/01/20 By balance C/d 132220
165000 165000
01/02/20 To balance A/c 132220
Building A/c
Date Particulars J/f Amount Date Particulars J/f Amount
01/01/20 To capital A/c 25000 30/01/20 By Balance C/d 50000
02/01/20 To cash a/c 15000
02/01/20 To Ram Furniture
A/c
10000
50000 50000
01/02/20 To balance B/d 50000
Bank A/c
Date Particulars J/f Amount Date Particulars J/f Amount
01/01/20 To capital A/c 30000 19/01/20 By Utility Expenses
A/c
390
17/01/20 To cash A/c 1700 30/01/20 By balance C/d 35510
31/01/20 To sales A/c 4200
35900 35900
01/02/20 To balance B/d 35510
Capital A/c
Date Particulars J/f Amount Date Particulars J/f Amount
30/01/2 To balance C/d 70000 01/01/20 By cash A/c 15000

0
By Building A/c 25000
By Bank A/c 30000
70000 70000
01/02/20 By Balancer B/d 70000
Ram Furniture A/c
Date Particulars J/f Amount Date Particulars J/f Amount
10/01/20 To cash a/c 10000 02/01/20 By Building A/c 10000
10000 10000
Purchase A/c
Date Particulars J/f Amount Date Particulars J/f Amount
05/01/20 To cash A/c 4500 30/01/20 By Balance C/d 4500
4500 4500
01/02/20 To Balance B/d 4500
Salary A/c
Date Particulars J/f Amount Date Particulars J/f Amount
08/01/20 To cash a/c 1400 30/01/02 By Balance C/d 1400
1400 1400
01/02/20 To Balance B/d 1400

Sales A/c
Date Particulars J/f Amount Date Particulars J/f Amount
30/01/20 To Balance C/d 154200 12/01/20 By cash A/c 150000
31/01/20 By bank a/c 4200
154200 154200
01/02/20 To balance B/d 154200
Electricity Expenses A/c
Date Particulars J/f Amount Date Particulars J/f Amount
15/01/20 To cash A/c 180 30/01/20 By balance C/d 180
180 180
01/02/20 To Balance B/d 180
Utility Expenses A/c
Date Particulars J/f Amount Date Particulars J/f Amount
19/01/30 To bank a/c 390 30/01/20 By balance C/d 390
390 390
01/02/20 To balance B/d 390
Furniture A/c
Date Particulars J/f Amount Date Particulars J/f Amount
28/01/20 To Hari A/c 1200 30/01/20 By balance C/d 1200

1200 1200
01/02/20 To balance b/d 1200
Hari Limited A/c
Date Particulars J/f Amount($) Date Particulars J/f Amount($)
30/01/20 To balance C/d 1200 28/01/20 By furniture A/c 1200
1200 1200
01/02/20 By balance B/d 1200

PART B
Reviewing the different stages of H.R. life cycle related to Bourne Leisure Limited
We have chosen the accounting job role to analyse the H.R. life cycle of Bourne Leisure
Limited. The life cycle has five stages which are recruit, onboard, develop, retain and off-board,
which are as follow.
Recruitment
The first step is of recruiting new employees in the organisation. It refers to structuring a
good pipeline of employees so that company can have the right people in the appropriate
position. It helps Bourne Leisure Limited to be successful by having good employees. With help
of this step the company can get right type of candidate at appropriate position so that firm can
attain its objectives in effective manner. For example- Bourne Leisure Limited can get right
finance manager by identifying all his skills through this step.
Induction Orientation and On boarding
In this step, Bourne Leisure Limited interact with new employees so that they feel
welcome, valued and properly planned for their job role (Urban and Hoskova-Mayerova, 2017).
In this step, the company explains the culture and environment of an organisation in which
employees are going to work.

Career planning and development
The step is about how the company deal with performance management. Once
employees are establishing, it is the responsibility of organisation to develop a plan for their
career growth along with business growth. Bourne Leisure Limited need to focus on talent
management to boost productivity so that it can eventually enhance the revenue of the firm.
Retention
The best way to retain any employee in the organisation is to provide them require skills,
tools and training performing their activity effectively and effectively (Wang Akbar and Akbar,
2020). Losing an employee can make the company repeat the cycle again that force business to
incur cost repetitively
Off-board
Off-board refers to the termination and separation phase, which is basically
understanding employees why they are leaving the organisation. With respect to this, HR. of the
company needs to communicate with these employees to understand their perspective regarding
their respective job.
Development of performance plan of Bourne Leisure Limited with the accounting job role
Performance management is corporate tool that assist manger to monitor and evaluate
performance of employees. The job role of HR manager has been selected for which personal
development plan has been prepared below:
Skills Resources
Required
Actions to be
taken
Measuring the
actions
Time
Required
Time
management
Time management
base game, Proper
planning of
project with time
segregation
Learning goals
setting and
prioritising task
It can be observed by
comparing the standard
time set with the actual
time consumed to
complete the project.
Two weeks
Research and
analytics skills
Brain games,
being more
Playing games
like puzzle
I will measure this by
taking active
One week

observant, related to
management that
can enhance
observing and
thinking
capability
(Renna, Izzo, and
Romaniello,
2020).
participation in
complicated projects.
Team
management
Proper
segregation of
duties and taking
part as team
leaders
Planning team-
based projects
and task
It will measure it by
taking the review of
each team member.
One week
Decision-making
skill
Game-based on
analytical decision
making
Participation in
complex projects
and task
It can be measured by
evaluating standard
performance with
actual to analyse
decision-making skills.
One week
Communication
skill
Performing in
competition,
giving a
presentation on
different topics.
Engaging with
the good speaker
to learn basic and
improvement
areas (Park,
2018)
It can e evaluated by
comparing
performance with the
current to know the
improvement
2 week

Explaining the impact of ethical and legal consideration on hospitality
Specific legislation(s) that hospitality organisations have to comply and adhere to in the daily
transaction of business:
It is important for hospitality to know, and follow regulation to promote employee
welfare, ensure adequate services to guests, manage business exposure to risk and federal laws.
Employee welfare: It means anything done for comfort and improvements of the employee
over the wages paid to them and to provide services, facilities and benefits (Rijswijk and
Brazendale, 2017). The various welfare activities that should be provided to the employee are
free medical facilities, housing, stipends, transportation, provision for food cleanliness and
proper refreshment.
Client service: They are related to preparing proper good and services, ensuring hygienic
condition, which includes safety for guests—the owner of the company remembering and
appreciating the repeat customers.
Risk exposure: The hospitality industry faces the risk of suits based on breach of contract with
the guests and suppliers. Industry entrepreneurs and managers need knowledge of laws to
deflect exposure to risk that can lead to interruption or even closing of the business
(Biswakarma, 2017). The direct impact on individual lives that are sickness, dependent old age
and death.
Legal compliance: There are some laws that guests have to follow that are standards that apply
directly to the industry. They are smoke-free zones and food hygiene. Mainly hospitality focuses
on two laws that are fore safety and the truth in menu law (Wang, Mao and Liang, 2019.).
Similar to this legal frame, work includes the country' constitution, legislation, policy and
contracts.
Company’s employment and contract law impact on business decision-making.
 The incorporation of the company how to conduct its business, what are the compliance
and filing that the company have made with respect of government to keep physical
phenomenon.

 Employees regulation tell us about the non-discrimination of the employees, labours by
regulating the work of weekly hours, health, safety and working conditions (Tajeddini,
Altinay and Ratten, 2017).
 Contract laws that how it regulates their customer by providing them services as
mentioned and maintains the documentation.
Potential implications of employee’s welfare using legislatures
Employee welfare develops a friendly environment and builds a good ambiance between
employee and the management. It creates good work culture, builds teamwork to meet the
challenges of the organization and increase skillfulness or commitment from workers that will
result in high turnover, and the fruitfulness will increase.
Risk exposure: food safety is the biggest risk for the hospitality business. The virus can
spread when food comes into contact with infected people and pestiferous surfaces. Some
outcome may occur if the business serves' alcohol to the minor or intoxicated customer. The
person who sells alcohol in the business has a license so that they don't become self-complacent
over time (Porcu, del Barrio-Garcia, and Crespo-Almendros, 2019.). Transportation is a
necessity for hotels as they have to bring their customers from the airport. The driver presents a
variety of risks that if any person is injured from their vehicle, the hotel may be found liable for
their injuries, and the driver must have insurance of the car and all the legal documents that are
required as mentioned by the government.
Impact of ethical issues of regulations:
Unethical leadership: they are the behavior of the leaders or actions that are related to illegal or
existing standards that are based on the morals.
Toxic Workplace Culture: it has the impact on the employment regulations as this function is
related to the drama, fighting and unhappy employees that are find in every organizations.
Discrimination and Harassment : this has the direct impact on the ethical issue and it is very
common in the organization. It is also related to physical and verbal conduct which is shown by
the individual in the form of sex, gender and national origin.

Different roles in the hospitality sector and how they are interrelated
Operations and marketing: The work of marketing is related to carrying the
responsibility for converting the operations into the plans that are related to consumer need and
ways to satisfy it. All the important decisions under the company are taken by the marketing and
on the other hand operation keep focus on capacity and capabilities of production. They both
work in tandem to carry out the functions of the organisations smoothly.
Different types and methods of communication are:
Verbal communication
Non verbal communications
Written communications
listening communication.
The different levels used by the organisation:

Downward level: It means flow the superiors to subordinates. It means informing the
procedures and policies of the organisation. It can be face to face as well through memo, orders
and job descriptions.
Upward level: It means the person of lower-level communicating to the persons above
them. This includes reaction and suggestions to the workers. They are related to submitting
reports and proposals prepared for the boss.
Horizontal communication: This takes place between two or more persons and are
subordinates of the same person or working on the same level of the organisation.
Coordination is the essence of management. It is the process by which the manager
integrates their activity and arrangement of group efforts to maintain harmony among the
members of the firm to achieve the organisational goals (Front Office coordination with other
departments 2020). Integration means the act of combining separate people and things. The
coordination between the front office and housekeeping department is very important. Reception
is the main in hospitality services because it provides room for sale and by providing a perfect
reservation for the guests.
Handling of discrepancy reports: The receptionist has to prepare the register of the
guest and that register or report is sent to the front office agent have to see that report is properly
made including categories of room sold, local and foreign company and the rates after they have
to give that report to the manager or chief from desk personnel.
Hotel room service departments: They should be closely in touch with the guest when
they arrive, and departure and the front office should intimate that they should provide services
by providing flower bouquet, fruit basket and welcome drink.
To improve the coordination and integration in the organisation, the firms must have a strong
process along with proper software. They should allow inter-department coordination, which
will result in good signs for the organisations.
CONCLUSION
The above report stated that BOURNE LEISURE Limited operates in the hospitality
industry. In this project, the principles of the double-entry & bookkeeping system are used

along with their ledger account and trial balance. Further, the report will also have discussed the
different stages of the HR life cycle applied to a specific hospitality job role. The file will also
be underlying the importance of retaining and developing talent and performance management
plan for a specific hospitality job role by using different techniques to resolve negative
behaviour and overcome issues of staff retention along with Identify specific legislation that a
hospitality organisation has to comply with and adhere to specific examples. Illustrate how the
company, employment and contract law has a potential impact on business decision making in
the hospitality industry. At last, it has been discussed about the different functional roles in the
hospitality sector and their interrelation by using an organization chart along with different
communication methods and levels used in an business and review of Coordination and
Integration within a business organization by analyzing the effectiveness of different
communication methods, integration and monitoring objectives and strengthen the value chain
about how to improve the coordination of overall business.

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Front Office coordination with other departments. [Online]. Available through:
<https://hmhub.me/front-office-co-ordination-with-other-departments >