1. Section 1 Accounting system Accounting for Hotels assistant lecture alya elfedawy

2. Accounting for hotels
The hotels and catering industry is a substantial one.
Hotel industry is a major source of earning foreign exchange.
Types of hotels:
(1) Transient Hotels.
(2) Residential Hotels.
(3) Motor Hotels (Motels).
(4) Resort Hotels.

3. The main features of Hotels
(1) The main characteristics:
(1) Human resources.
(2) Physical resources.
(3) Services activities.
(4) Seasonal activity.

4. Accounting System and financial statements in Hotels
(1) Vouchers:
(a) Statistical Vouchers.
(b) Accounting Vouchers.
(2)Accounting Records:
(a) Balance sheet.
(b) Income statement

5. Accounting System and financial statements in Hotels
To determine the profit or loss of the hotel, we should follow the following procedures:
(1) Dividing the hotel into groups of activities, and each activity should has its own revenues and expenses account.
(2) Classifying the various expenses into:
(a) Direct expenses related to each activity.
(b) Indirect expenses (common) that can be easily allocated between activities.
(c) Indirect expenses(common) that can not be easily allocated between activities. Then they assign on the P/L account.

6. Accounting System and financial statements in Hotels
(3) Determining the revenues of each activity. (4) Performing P/L account for the hotel.

7. Accounting for Various Activities (1) Accounting in Rooms activity
There are two departments for this activity:
(1) Reception
(2) Room services.

8. Accounting for Various Activities (1) Accounting in Rooms activity
(1) Reception
The main vouchers and recording:
(1) Rooms data board: a wall board that contain the keys and any information about the various rooms.
(2) Arriving Card: the card that should be filled by the customer when arriving.
(3) Reserving record: Recording the names of customer who want to reserve in the hotel.
(4) Recording card: The original card kept in the reception department, while many copies have been sent to the various departments.

9. Accounting for Various Activities (1) Accounting in Rooms activity
(2) Room services
The main vouchers and recording:
(1) Guests record.
(2) Receipts.
(3) Guest bill.
(4) Daily guests record.

10. Income Statement (1) Rooms Revenues: Transit. Permanent.
Additional (Halls and conferences).
(2) Expenses:
Salaries.
Rooms cleaning.
Commission of the travel agent.
Telecommunication.
Laundry

11. Income Statement
Reservation fees.
Employees clothes.

12. (2) Accounting in Restaurant activity Income Statement
(1) Revenues:
Food and beverage.
(2) Cost of sales:
Food expenses
beverage expenses.
Direct expenses
Indirect expenses.

13. (2) Accounting in Restaurant activity
The different activities:
(1) Purchasing and storage.
This activity deal with providing the economic quantity of purchase and storage the quantity.
(2) Cooking activity.
Preparing the food for all departments.

14. Example Following are the date of ABC hotel: (1) The revenues:
Permanent guest $.
Halls and conferences rooms $.
Food $
Beverage $.
(2) The expenses:
Salaries:
For rooms activity, 25000$
For food and beverage activity, 10000$.

15. Example Telecommunication 50000$ Food expenses 125000$.
Preparing the food for all departments $.
Rooms cleaning 50000$.
Commission of the travel agent 25000$.
Reservation fees 60000$.
Beverage expenses 40000$
Laundry 20000$
The cost of purchasing the food 30000$.
Indirect costs between the two activities $ (1:2).
Common costs $.

16. Example
Required:
(1) Preparing the income statement of Rooms activity.
(2) Preparing the income statement of Food and beverage activity.
Preparing the income statement of ABC hotel.

17. Solution
Room Food and beverage hotel Revenue (-) Expenses Salaries Telecommunication Food & beverage ex Preparing the food Commission Reservation fees Laundry Purchasing food Indirect cost Common cost Net Income