Hotel Accounting Syllabus - BHM (TU)

Course Objectives

This course aims to provide the students with the fundamental knowledge of accounting principles and practices in order to handle accounting functions in a hotel business and use for managerial decision making.

Course Description

This course presents a thorough and systematic knowledge of accounting required to fulfill the need for hotel accounting department which include accounting process/cycle, cash and banking transaction, capital and revenue concept, financial statement, cash flow statement, Conceptual foundation of hotel industry, Accounting for guest ledger, Uniform system of accounts and Financial Statement Analysis of Hotel.

Part I Fundamental of Accounting

 Unit 1: Introduction                                                                                                                                            LH 2

Introduction, Meaning and concept of Accounting, Objectives, Importance and Limitations of Accounting, Accounting Principles and concept

Unit 2: The Accounting Process/Cycle                                                                                 LH10

Introduction, Double Entry System: Concept, Meaning and Features, Accounting Cycle and Rules of Debit and Credit, Journalizing of Transaction, Ledger Accounts, Sub- Divisions of Journals: Purchase Book, Sales Book, Purchase Return/Sales Return, Trial Balance: Concept, Importance and Methods of Preparation

Unit 3: Cash and Banking Transaction                                                                                LH 5

Introduction, Meaning of Cash, Cheque and Bank, Types of Bank Account, Concept of Cash Book and its preparation: Single, Double and Triple Column, Bank Reconciliation Statement

Unit 4: Capital and Revenue concept                                                                               LH 2

Introduction, Meaning/Concept: Capital and Revenue Expenditure and Income/profit, Reserve and Provisions: Meaning, Types, Differences and Accounting Treatment

Unit 5: Financial statement                                                                                            LH 10

Introduction, Trading /Manufacturing account, Profit/Loss Account , Balance Sheet, Final Account with Adjustment, Closing Entries

Unit 6: Cash Flow statement                                                                                           LH 6

Introduction, Meaning / Concept and Importance, Methods of Preparation: Direct and Indirect.

Part II Accounting in the Hotel Industry

 Unit 7: Conceptual foundation of hotel industry                                                                                 LH 2

Introduction, Concept /Meaning, Nature of hotel industry, Revenue and non-revenue generating departments of hotel, Night auditor: Role and Functions, Working procedure

Unit 8: Accounting for Guest ledger                                                                              LH 2

Introduction, Concept, Preparation and Accounting Treatment of Guest Ledger and City ledger

Unit 9: Uniform System of Accounts                                                                               LH 3

Introduction, Departmental Profit/loss Statement, Room Sales, Food and Beverage Sales, Minor Department Sales

Unit 10: Financial Statement Analysis of Hotel                                                                                       LH 6

Introduction, Financial statement analysis: Concept and Meaning, Concept, Meaning, Importance and Limitation of ratio analysis, Types of Ratios, Liquidity Ratio, Leverage Ratio, Activity or Turnover Ratio, Profitability Ratio, Operating ratio:-Food Sales Ratio, Beverages cost ratio, Food Cost Ratio, Average Food Spent cover, Average beverage spent per cover, Room Occupancy Ratio, Double Occupancy Ratio, Yield management Ratio, Revenue Per Available Room (Annual), Cost Available Per Room (annual), Cost Per Occupied Room, Seat Turnover Ratio

References

Schmidgall, R. S. &Damitio, J. W.Hospitality Industry Financial Accounting. 2^nd ed. USA: USA: Educational Institute of American Hotel and Lodging Association.

Cote, R. Understanding Hospitality Accounting-I, 4^th ed. USA: Educational Institute of American Hotel and Lodging Association.

Gupta, R.L. &Radhaswamy, M. Advance Accountancy. New Delhi: Sultan Chand & Sons. J.P.Prasanna K,, Daniel L.N &PagadMruthyunjaya V.Financial Accounting for Hotels. New Delhi: Tata McGraw Hill Education Private Limited.

Parajuli, Dilip. Hotel Accounting and Inventory Management. Kathmandu, Bhundipuran.