Tribhuvan University
Faculty of Management
Office of the Dean
Bachelor of Hotel Management (BHM)
Course Description
:This course presents a thorough and systematic knowledge of accounting , process of accounting, cash and banking transaction, financial statement and its analysis and capital & revenue concept required to fulfill the need for hospitality accounting department.
Course Objective
:This course aims to provide the students with the fundamental knowledge of accounting principles and practices in order to handle accounting functions in a hospitality business and use for managerial decision making. Course Description This course presents a thorough and systematic knowledge of accounting , process of accounting, cash and banking transaction, financial statement and its analysis and capital & revenue concept required to fulfill the need for hospitality accounting department.
Course Contents:
Lecture hours show the approximate classroom time allocated to each unit.
Unit 1. Introduction
- Meaning, importance and limitations of accounting
- Accounting principles and concept
- Concept, objectives and differences of Financial, Cost and Management Accounting,
Unit 2. The Accounting Process/Cycle
- Concept, importance and features of Double Entry System
- Accounting c ycle
- Rules of Debit and Credit, Journal of transaction, Ledger Accounts, Sub-divisions of j ournals:
- Purchase Book, Sales Book, Purchase Return, Sales Return
- Trial Balance: concept, importance and methods of Preparation
Unit 3. Cash and Banking Transaction
- Meaning of cash, cheque and bank
- Types of bank account
- Concept of Cash Book and preparation of Triple Column Cash Book
- Bank Reconciliation Statement
Unit 4. Capital and Revenue concept
- Concept and types of capital & revenue expenditure, income, profit
- Concept and types of reserve and provisions and accounting treatment
Unit 5. Financial statement
- Concept, objectives and preparation of Profit/Loss Account , Balance Sheet, Final Account with Adjustment, Closing and Opening Entries
- Concept, importance and direct method of preparation of Cash Flow Statement.
Unit 6. Conceptual foundation of hospitality industry
- Meaning and nature of hospitality industry
- Revenue and non-revenue generating departments of hotel
- Night auditor: Role and functions
- Airline operation accounting (revenue, expenses, travel and trekking accounting).
Unit 7. Accounting for Guest ledger
- Concept, preparation and accounting treatment of Guest Ledger and Cityledger
Unit 8. Uniform System of Accounts
- Meaning, Departmental Profit/loss Statement, Room Sales, Food and Beverage Sales, Minor Department Sales
Unit 9. Financial Statement Analysis of Hospitality
- Concept and need of financial statement analysis
- Concept, importance and limitations of ratio analysis, Types of ratios: liquidity ratios, leverage ratios, efficiency and profitability ratios
- Operating ratios: Average r oom achieved, Revenue per available room, Room occupancy ratios, Double occupancy ratio, Yield management ratio, Cost per available room, C ost per occupied room, Beverages cost ratio, Food cost ratio, Average food spent cover, Average beverage spent per cover , Seat turnover ratio.
Suggested Readings:
American Hotel and Lodging Association. (Publication date not available, but likely before 2009) (Note: Since this is the 4th edition, the original publication date must be before 2009) Coltman, Michael M. (1998). Hospitality Management Accounting. John Wiley & Sons. Cote, R. Understanding Hospitality Accounting-I, 4th ed. USA: Educational Institute of Dopson, L. R., & Hayes, D. K. (2009). Managerial accounting for the Hospitality Industry. Kotas, R & Conlan,M (1997). Hospitality Accounting, Pat Bond Schmidgall, R. S. & Damitio, J. W.Hospitality Industry Financial Accounting. 2nd ed. USA: USA: Educational Institute of American Hotel and Lodging Association. Wiley. Hospitality accounting. (2013). Pearson