Hospitality Business: Financial Performance, HR, and Legal Compliance

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Hospitality Business

Contents
Introduction......................................................................................................................................3
Assessment 1...................................................................................................................................4
P1 (LO1) Investigate the principles of managing and monitoring financial performance..........4
P2 (LO1) Apply the double entry book-keeping system of debits and credits to record sales
and purchases transactions in a general ledger............................................................................5
P3 (LO1) Produce a basic trial balance applying the use of the balance of rule to complete the
ledger (D1)...................................................................................................................................9
M1 (LO1) Analyse sales and purchase transactions to compile a trial balance using double-
entry bookkeeping appropriately and effectively......................................................................16
Assessment 2.................................................................................................................................17
P4 (LO2) Review the different stages of the HR life cycle applied to a specific hospitality job
role and their importance for retaining and developing talent...................................................17
P5 (LO2) Develop a performance management plan for a specific hospitality job role applying
techniques to resolve both negative behavior and overcome issues of staff retention..............19
P6 (LO3) Identify specific legislation that a hospitality organisation has to comply and adhere
to................................................................................................................................................21
P7 (LO3) Using specific examples illustrate how the company, employment, and contract law
has a potential impact on business decision making in the hospitality industry.......................22
Assessment 3 (LO4)......................................................................................................................27
Academic Poster........................................................................................................................27
An analysis of the different functional roles within the hospitality sector................................27
An analysis of different methods of communication, coordination, and monitoring within the
Food & Beverage.......................................................................................................................28
A critical analysis with justified recommendations on the proposed merger between hotels
departments, highlighting hierarchy, delegating authority and responsibilities of each
department.................................................................................................................................28
Conclusion.....................................................................................................................................30

Introduction
The hospitality business is a process where individual book their packages online and facilitate
services to visit other countries. This business is operating at a wider level so that individual can
visit in other countries properly. This assessment is focused on the hospitality business in the
context of the different unit attribute. The first aspect of the report will be going to discuss
management of finance with transaction recording to minimise the cost. It will be discussed
about the management of human resources life cycle in the aspect of HR strategy. A clear
description of the impact of legal and ethical consideration will be discussed in the context of
hospitality business like TUI. Importance of coordinating and integration among various
functions of departments in the hospitality section will be discussed.

Assessment 1
P1 (LO1) Investigate the principles of managing and monitoring financial performance.
Financial performance of any organisation plays a critical role to achieve key desired
organisational objectives and goals. To assess the financial performance of any business, there
are many issues and questions which need to be answered, and these questions can be easily
answered only by proper management and monitoring of financial performance of any business.
As you all know no business can survive without adequate profits, regular cash flow, and strong
sales number. Therefore it is very important and essential to incorporate principles of managing
and monitoring financial performance within the organisation. Finance is the lifeline or blood of
the business so it should be carefully managed and monitored to achieve the desired objective of
the organisation.
Some of the principles of managing and monitoring financial performances are as follows:
1. Preparation of working capital statements and financial ratios:- Every business
required through its finance team to prepare working capital statements and calculation of
ratios to compare assets with liabilities so that assets can convert into cash ho quickly.
2. Understand risk: without risk, no business can run. The more risk will give you more
return. Hence it is key to understand the return on investment and also called risk-return
trade-off. Therefore by understanding risk factors, it is easy to manage financial
performance more effectively and efficiently.
3. Preparation of aged debtor trial balance: aged debtor trial balance is prepared every
month so the company can keep the record of all the customers who owe them money.
4. Pay attention to taxes: By managing the tax compliance financial performances of the
company can be managed more effectively and efficiently (Kumari, and Prasad 2015).

P2 (LO1) Apply the double entry book-keeping system of debits and credits to record sales
and purchases transactions in a general ledger
Journal entries for the month of September
Sr.
No. Date Particulars Amount Amount
Dr. Cr.
(Amount
in £)
(Amount
in £)
1 Septem
ber Cash A/c Dr. 30000
To Capital A/c 30000
(Being cash introduced in the business)
2 Septem
ber Rent A/c Dr. 1000
To Cash A/c 1000
(Being rent paid for the month of September)

3 Septem
ber Fixed assets A/c Dr. 25000
To Cash A/c 10000
To Fixed asset supplier A/c 15000
(Being fixed asset purchased in cash and credit)
4 Septem
ber Insurance A/c Dr. 1200
To Cash A/c 1200
(Being insurance paid for the accident insurance)
5 Septem
ber Cash A/c Dr. 2000
To Sales A/c 2000
(Being amount received from the food suppliers)
6 Septem
ber Laundry fees A/c Dr. 200
To cash A/c 200

(Being laundry fees for the month of September)
7 Septem
ber
Telephone expenses A/c
Dr. 2220
To Cash A/c 2220
(Being telephone and internet expenses)
8 Septem
ber
Miscellaneous Expenses A/c
Dr. 950
To cash A/c 950
(Being rates, water charges and refuse paid)
9 Septem
ber Salaries A/c Dr. 1740
To Cash A/c 1740
(Being wages and salaries paid)
10 Septem
ber Cash A/c Dr. 20000
To Sales A/c 20000

(Being company food sold)
11 Septem
ber Cash A/c Dr. 13000
To Sales A/c 13000
(Being Beverage sold)
Total 97310 97310

P3 (LO1) Produce a basic trial balance applying the use of the balance off rule to complete
the ledger (D1)
Dr. Cash A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt
Septem
ber To Capital A/c 30000
Septem
ber By Fixed Assets A/c 10000
Septem
ber To Rent A/c 1000
Septem
ber By Insurance A/c 1200
Septem
ber To Sales A/c 2000
Septem
ber By Laundry Fees A/c 200
Septem
ber To Sales A/c 20000
Septem
ber
By Miscellaneous
Expenses A/c 950
Septem
ber By Telephone Expenses 2220
Septem
ber To Sales A/c 13000
Septem
ber By Salaries A/c 1740
Septem
ber By Balance C/d 49690

Total 66000 Total 66000
Dr. Capital A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt
Septem
ber To Balance C/d 30000
Septem
ber By Cash A/c 30000
Total 30000 Total 30000
Dr. Rent A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt
Septem
ber To Cash A/c 1000
Septem
ber By Balance C/d 1000
Total 1000 Total 1000
Dr. Fixed Assets A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt

Septem
ber To Cash A/c 10000
Septem
ber By Balance C/d 25000
Septem
ber
To Fixed Asset
Supplier 15000
Total 25000 Total 25000
Dr. Fixed Asset Supplier A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt
Septem
ber To Balance C/d 15000
Septem
ber By Fixed Assets A/c 15000
Total 15000 Total 15000
Dr. Insurance A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt
Septem
ber To Cash A/c 1200
Septem
ber By Balance C/d 1200

Total 1200 Total 1200
Dr. Laundry Fees A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt
Septem
ber To Cash A/c 200
Septem
ber By Balance C/d 200
Total 200 Total 200
Dr. Telephone Expenses A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt
Septem
ber To Cash A/c 2220
Septem
ber By Balance C/d 2220
Total 2220 Total 2220
Dr. Miscellaneous Expenses A/c Cr.
Date Particular
L.
F
Amou
nt Date Particular
L.
F
Amou
nt