Friday, May 4, 2012

III – Short Essay / Paragraph Questions (Answer Any Five Questions)


III –Short Essay / Paragraph Questions (Answer Any Five Questions)

22)      Define revenue expenditure and give two examples

23)     X purchased a radiogram on HP system. He is required to pay Rs 800/- down, Rs. 400/-at the end of first year and Rs. 300/- at the end of second year and Rs.700/- at the end of third year.Interest is charged at 5% p. a. calculate cash price and interest of each instalment



24) Prepare accounting equation and balance sheet on the basis of the following :

Ram started business with cash 60,000

He purchased furniture 10,000

He paid rent 2,000

He purchased goods on credit from Mr.Anil 30,000

He sold goods (cost price Rs.20,000) for cash 25,000



25)Enter the following transactions in the double column cash book of  Mr.Rajesh and balance it.

2003

Aug. 1 Opening Balance : Cash in Hand Rs.4,250  Cash at Bank Rs.13,750

          2            Paid to petty cashier Rs.2,500

          2  Cash sales Rs.1,750

           3 Paid to Arun by cheque Rs.3,750

           3 Received a cheque from Mr.Ram Babu Rs.4,500 paid into bank.

           5 Received cheque from Mr.Jayaraman Rs.6,000 paid into bank

           8 Cash purchases Rs.2,500

           8 Paid rent by cheque Rs. 2,500

           9 Cash withdrawn from bank for office use Rs.2,500

         10 Cash sales Rs.3,750

         14 Stationery purchased Rs.1,000

         20 Cash sales Rs.6750

         21 Paid into bank Rs.10,000



26)Mr. Lal occupied a room in the Sagar Hotel, Trissur on 15 th January 2010. He came at 8 a.m. for accommodation only at a Rent of Rs. 800 per day for every 24 hours or part thereof.

Compute the amount payable by Mr. Lal under each of the following conditions assuming that

service charge levied by the hotel @ 10%

(a) If he checks out at 4.00 p.m. on 15-01-2010

(b) If he checks out at 7.00 a.m. on 16-01-2010

(c) If he checks out at 1.00 p.m. on 16-01-2010

(d) If he checks out at 8.00 p.m. on 17-01-2010



27)What are the adjusting entries passed for the following ?

Salary outstanding Rs 1450

Insurance paid in advance Rs 660

Depreciation on plant and machinery Rs 1750

Interest received in advance Rs 340

Goods distributed as free samples Rs 500





28)From the following data ascertain total sales

Balance of debtors on 1-1-2011                 24000

Sales returns                                                 10000

Cash received from customers                    90000

Discount allowed t them                              6000

B/R received                                     34000

Bad debts                                           3000

B/R dishonoured                              7000

Balance of debtors as on 31-12-2011        20000

Cash sales                                          50000

                                                      (5 × 2 = 10 Weightage)

II – Short Answer Type Questions (Answer All Nine Questions)


II –Short Answer Type Questions (Answer All Nine Questions)
13)     Give two merits of single entry systems.
14)     What is deferred revenue expenditure?
15)     What are intangible Assets?
16)     Name the account prepared by a non-profit organisation.
17)     what are returns inward?
18)     What is down payment?
19)     Define working paper?
20)     What you mean by inter departmental transfer
21)     What is independent branch?                                                                       

  (9 × 1 = 9 Weightage)

Financial Accounting 100%IInd Semester B.Com Degree Examination


I - Answer All Twelve Questions

A - Fill in the Blanks:

1)     Under …………… single entry system no subsidiary books are kept.
2)     Branch stock account is always prepared at ……………… price

3)     Accounting standard 10 deals with accounting for …………………
4)     ……………… ledger is the ledger maintained by a hotel under the tabular system

B - Write the Correct Answer from the Choice Given in the Brackets:

5)     Amount incurred on electric installation of a new building is  (capital receipt, capital expenditure, revenue exp, revenue receipt)
6)     Under instalment system, total interest receivable by the seller is credited (interest suspense account, interest account, sales account, none of these)
7)     Income received in advance is (an income, a liability, an asset, a loss)

8)     Which items enters in the Income and expenditure account? (sale of old newspaper, Closing balance of cash, Tournament fund, None of these)

 
C – Match the items:

9)        Income and expenditure account                        Hotel and restaurants

10)   Visitor’s ledger                                                           Final accounts of sole Trader

11)   Receipts and payment account                            Non-profit organisation

12)   P/L account                                                               prepared from cash book

 (12 × ¼ = 3 Weightage)

Friday, April 6, 2012

Final Accounts of a Hotel

After transactions are recorded in the subsidiary books, entries are posted in the appropriate ledger accounts. After extracting the balances in the ledger accounts a trial balance is prepared at the end of the accounting year to check the arithmetical accuracy. From the trial balance final accounts are prepared in the usual manner. The final accounts consist of Profit and Loss Account and Balance Sheet.

Friday, March 30, 2012

Expenditures of a Hotel

1. Purchase of provisions, stores and wine.
2. Kitchen and bar expenses.
3. Remunerations to staff (or employee remuneration and welfare expense)
4. Electricity, fuel and water.
4. Entertainment expenses.
5. Advertisement and publicity expenses.
6. Repairs, renewals and replacements.
7. Administrative and general expenses.
8. Room occupying expenses, etc.

Thursday, March 29, 2012

Departments of a Hotel

Departments of a Hotel
All departments of a hotel may be classified into two-revenue departments and non-revenue departments.
Revenue Earning Departments Revenue earning departments are operational departments that sell services or products to guests. A hotel has two major revenue earning departments. They are: (i) Accommodations, and (ii) food and beverage.

Accommodations
Accommodation department is responsible for the sale of rooms.. These departments are responsible for maintaining and selling the rooms in a hotel. In most hotels, these are the departments that directly or indirectly generate more revenue than any other department. This is because the sale of rooms constitutes a minimum of 50 per cent of the total revenue of a hotel. The various departments that support the room divisions department are:

Front office department: It is an operational department. It is the office when the guest is received, provided information, his luggage is handled, his accounts are settled on departure, and his complaints, problems and suggestions are looked after. It is responsible for welcoming and registering guests, allotting those rooms, and helping guests checking out.

Housekeeping department: This department is responsible for the cleanliness, maintenance and the aesthetic standard of the hotel. Housekeeping includes the servicing of guest rooms. This includes cleaning bedrooms, staircases, public areas and floral arrangements, first aid to guests etc.

Maintenance department:This department is responsible for all kinds of maintenance, repair and engineering work on equipment, machines, fixtures and fittings. It undertakes the supply of airconditioning, lighting, mechanical, electrical, carpentry and civil works of the hotel. Maintenance department is also known as engineering department.

Laundry: This is a critical department that launders the large volume of bed lines, restaurant lines, staff uniforms and guest garments. Large hotels may have an in-house laundry to control the movement of linen and uniform which are considered to be the precious assets of the hotel. Smaller hotels may outsource this activity to local laundries. The laundry is headed by laundry manager.

Food and Beverage (F & B) Department: The food and beverage department is another major revenue producing department. It is the key to the success of a hotel. The F & B department includes the restaurants, bars, coffee shops, banquets, room service, kitchen and bakery.. The various departments that come under the F & B may be discussed below in brief. :

Restaurant
A restaurant is a commercial establishment committed to the sale of food and beverage. A restaurant may be a licensed part of a hotel operation, whereby the sales of the restaurant contributes to the sales performance of the hotel, or a franchised operation, when the hotel leases space. In this case the hotel has no share in the profits of the restaurant operations. Restaurants are equipped with tables, chairs, crockery, cutlery, linen and decor. In addition to the basic purpose, restaurants may provide other facilities such as bar, entertainment, children party facilities, home delivery services, take-away services, outdoor catering etc.

Room Service: Room service is a food service operation. It provides food and beverage to guests staying in the hotel rooms. The room service is located in the kitchen and has an order-taker’s desk. Guests may order their food and beverage directly from their rooms to the room service order-taker who will pass on the order to the service team. The service team co-ordinates with the kitchen or bar for the preparation of the item.

Bars : The bar dispenses wines, liquor, spirits, juices, cigars and cigarettes. Restaurant food service professionals will co-ordinate with the bar for a guest’s beverage orders.

Banquets : The banquets department is a major revenue area within food and beverage department. It is headed by a banquet manager. He organizes and looks after large parties like dinners for hundreds of guests, conventions, marriage receptions and other functions.

Kitchens :A kitchen is the place where food is prepared. Large hotels have independent sections to deal with various aspects of food preparation due to the large volume of activity. Kitchen personnel co-ordinate closely with restaurants, room service, bars and banquets for the supply of food orders. Chef-de-cuisine is the head of the kitchen. He is responsible for planning, organizing and controlling the kitchen operations.

Kitchen stewarding :This department is primarily concerned with the storage, maintenance, cleanliness, and issue of cutlery, crockery, hollowware, chinaware and glassware to the restaurants and kitchens. It is responsible for the cleanliness of kitchens and the washing of pots and pans.
Minor Revenue Earning Departments

There are certain departments which earn smaller revenue. Such departments are as follows:
  Health club and recreation : People are getting increasingly health and physical fitness conscious. Hence some hotels maintain gymnasiums for men and women and swimming pool. Similarly, some hotels provide tennis courts, squash courts, and many other recreation facilities.
  Delicatessen : This department sells in-house butchery products.
  Patisseries.  : It sells bakery products.
  Beauty Salon : This provides hair dressing service and beauty care.
  Flower Shop : This is the retail outlet of the flowers and ferns from the gardens of the hotel.
  Health food counter : This is usually found at the health club. The counter provides health foods and diet foods that support a health regimen created by a dietician.

Tuesday, March 27, 2012

ACCOUNTING FOR HOTELS

Meaning and Definition of Hotels
A hotel simply refers to an establishment that provides rooms and meals. A hotel may be defined as a place that offers accommodation, food, and beverages at a cost that enables it to make a profit. Hotels provide accommodation, meals and refreshments, for irregular periods of time for those who may reserve their accommodation either in advance or on the premises. In broad terms, hotels provide facilities to meet the needs of the modern traveler. In short, hotel is an establishment that provides lodging usually on a short term basis. Today hotels provide much more than just accommodation and meals. It often provides a number of services such as restaurant, swimming pool, or child care; some hotels have conference and meeting rooms. Services are provided to guests based on their needs. Now the hotel industry is referred to as ‘hospitality industry’.

Features of Hotel Business
 The chief features of hotel business are as follows:
1. Hotels provide accommodation and food items to guests.
2. Some hotels maintain bars. They offer drinks to customers.
3. Some hotels may have on their premises a beauty parlor, a hair dressing saloon, a jewelers shop, a book stall, a newspaper stand etc.
4. There are some hotels that provide various professional and technical services.
5. Most hotels provide credit facility to customers. No guest is required to pay room rent in advance or to pay for the other services and facilities at the time when the services are rendered to him. Sometimes an advance is required to be paid. At the time of departure the balance is paid
6. In hotels, there are large numbers of stereo type transactions.