ACCOUNTING PROCEDURE IN HOTELS

CHAPTER ONE

1.0 INTRODUCTION
The practice of accounting came into existence many years ago though, there was no acceptable definite record as to when accounting developed. It should be noted that with the advent of colonial rule in Africa, the European system of accounting was introduced in most of the African countries such as Nigeria. Then, different kinds of people were employed to take care of farms and properties of the Whitman and after that, they have to account for their success so far to their masters because there is a saying that “for every responsibility, there is a saying that “for every responsible, there is always an accountability”. So if the origin of accounting system is to be trace, if should start from the time people started giving accounts they used in those days cannot be or is not the same as the method we use in this our modern days but can be seen as a base for the modern days account system. Many definitions have been put forward by various authors of the subject and all seems to have the same meaning. One of such definitions is that by the American Accounting Association which defined Accounting as “a process of identifying, measuring and communicating economic information to permit informed judgements and decisions by the users of such. However, the definition could be extended by seeing accounting as “the art of recording, classifying and summarizing, analysing, interpreting and reporting on the financial transactions and position of an organization to interested persons”. From the definition, it can be observed that all accounting activities involve the use of documentation. Companies, organizations, institutions and other establishments require the services of accounting information to understand what is going on n the numerous branches, to educate the effectiveness of companies policies on operation and impact of government’s fiscal and monetary instruments. Accounting information also helps potential investors to put their investments into optimal uses by providing adequate feasibility reports to guide would be investors.
Now, let us look at the need for accounting information in an organization like Hotels, you will find out that it helps in revealing the amount of profit or loss made and it also determines the true financial position of the hotel. Accounting information also helps in dealing on the type of labour to be acquired and the amount to be paid to labourers as their salaries and wages. It also helps in providing a guide to future policy. This then leads to the necessity for accounting as underlined by the existence of an accounting department in any organization.

1.1 STATEMENT OF THE PROBLEM
Major problem
This research study entitled “Accounting procedures in Hotels will try to look into the nature, process, system by which various hotels in Enugu state operate will use of accounting systems and techniques taking a case study of ZODIAC HOTELS LIMITED ENUGU.
Sub problem
As we all know that accounting is a living, practical course, there is need to know the present practices of the profession in such areas, among other as.
1. Working capital management
2. Preparation and payment of salaries and wages
3. Books of accounts
4. Sales income
5. Financial report and statements
6. Assets

1.2 PURPOSE OF THE STUDY
I have particularly involved myself in the operation of a hotel. Sit is known that the researcher’s particular interest in hotel administration can not be over emphasized.
The purpose or objective of this of this research work is as follows.
i. To examine the forms they (Zodiac Hotels Limit Enugu) take in presenting their transactions with other parties.
ii. To determine the accounting system by which the hotel operates in terms of the “accounting concepts and conventions.

1.3 SIGNIFICANCE OF THE STUDY
I promised that at the completion of this projects, it will helps others who have not been opportuned which the hotels use. For the future researchers, the work will be useful and helpful to them because they can make reference to it as they carry out their own work. It is worthy of note that presently; the researchers work load is lessened because of the guidelines on this topic that was made available for him.

1.4 SCOPE AND LIMITATION OF THE STUDY
Due to time constraint and finance, the researcher has decided to confine himself to the accounting procedures in zodiac Hotels limited, Enugu. If not because of the above reasons, I wailed have liked to make comparison of many hotels.

1.5 RESEARCH QUESTIONS
Ho: The accounting procedure in most hotels is inadequate
HA: The accounting procedure in most hotels is adequate
Ho: The accounting procedure used by Hotels does not affect the financial statement of the hotels
HA: The accounting procedure used by hotels affects the financial statement of the hotels.

1.6 DEFINITION OF TERMS 
Accounting
The art of recording, classifying and summarizing in a significant manner and in terms of money, transactions and events which are in part at least, of a financial character, and interpreting the results there to

Liability
Debt which is owned by a company for goods and services supplied to her which are not liquidated at the time of preparing the balance sheet.

Asset
Anything which is acquired by a business entity either for a long-term use within the company for the generation of income or for short term/run used for the purpose of conversion into cash within a year.
Profit
The excess of the selling price over all cost and expenses incurred in marketing the sale
Financial statement
A summary of figure, facts showing the financial condition of a business.

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