Main Topics of Study:

Financial Position:

• Exchange & Value
• Capital
• Financial Position
• Separate Entity
• Assets & Liabilities
• The Balance Sheet
• Types of Assets & Liabilities

Types of Financial Transaction:

• Transactions & the Balance Sheet
• The Duality of Transactions & the Money Measurement Concept
• Profit Defined
• Types of Expenditure: the Capital/Revenue Distinction
• Generic Types of Transaction

Recording, Processing & Correcting Financial Transactions:

• The Double-entry System
• Periodic Balancing of the Books
• The Trial Balance
• Types of Error
• The Correction of Errors

Preparing the Final Accounts:

• Calculating Profitability
• The Trading & Profit & Loss Account
• The Accruals Concept
• The Balance Sheet

Accounting for Fixed Assets:

• Definition of Fixed Assets
• Depreciation of Fixed Assets
• Depreciation & the Accruals Concept
• Methods of Depreciation
• Recording, Processing & Reporting Depreciation in the Accounts
• Accounting for the Acquisition & Disposal of Fixed Assets
• The Consistency Concept
• Intangible Fixed Assets

Accounting for Stocks:

• Types of Stock
• Stock Valuation & Profitability
• Control & Verification of Purchasing & Receiving
• Stock Control Systems
• Stock Valuation When Input Prices are Changing

Accounting for Credit Transactions:

• Cash & Credit Transactions
• Debtors & Creditors
• Reconciliation of Statements & Ledger Accounts
• Credit Control
• Provision for Bad Debts
• Accounting, Purchasing & Cost Control

Accounting for Cash:

• The Importance of Cash Management
• The Cash Book
• Bank Reconciliations
• Till & Takings Management
• Credit Cards
• The Petty Cash System
• Foreign Currency Exchange
• Ticket Systems for Cash Sales
• Introduction to Cash Flow Statement
• Cash & the Accruals Concept

Accounting for Employees:

• The Significance of Employee Costs in HTL Businesses
• Remuneration Methods
• The Payroll System
• Accounting for Employment Costs
• Reporting Employee Costs

Accounting for VAT:

• The Principles of VAT
• Rates & Scope of VAT
• Calculating VAT Liability
• Completing a VAT Return & Paying VAT
• Accounting for VAT
• The Mechanics of VAT for Tour Operators & Travel Agents

Accounting for Recreation & Leisure Clubs:

• Types of Recreation & Leisure Clubs
• The Distinction Between Clubs & Commercial Organisations
• Sourcing of Income for Recreation & Leisure Clubs
• Measuring & Reporting Income & Expenditure
• Preparation of Final Accounts & Notes

Accounting for Multiple Ownership:

• The Partnership Agreement
• The Appropriation of Profit
• Changes to the Partnership
• Partnership Dissolution & Conversion
• Distinctive Features of Limited Companies
• The Final Accounts of Limited Companies
• Corporate Capital Structure

Costing a Product or Service:

• Expenses & Costs
• Cost Control & Organisational Structure
• The Three Main Components of Cost
• Calculating the Direct Material Cost
• Calculating the Direct Labour Cost
• Allocation & Apportionment of Overhead Costs
• Calculating the Total Cost of a Product in a Multiproduct, Multidepartmental Business
• Accounting, Purchasing & Cost Control

Pricing a Product or Service:

• Pricing Based on Cost Data
• Pricing Decisions Based on Market Conditions
• Pricing to Optimize Profit Using Cost & Market Information
• Pricing Strategies in Special Situations

Accounting for Contribution:

• The Behaviour of Cost & Revenue Against Output
• Break-even Analysis
• Contribution Theory
• The Contribution/Sales Ratio
• Evaluating Business Alternatives
• Contribution Theory & Product-mix Decisions
• Profit Maximization Where Resources are Limited
• Make-or-Buy Decisions

Planning & Budgeting:

• Strategic Planning
• The Annual Planning Cycle
• Preparing Individual Budgets
• Cash Budgets
• Master Budgets
• Behavioural Aspects of Planning & Budgeting

Standard Costing & Flexible Budgeting:

• Monitoring Performance Against Plans & Budgets
• Responsibility for Variances
• Flexible Budgets
• A Standard Costing System
• Calculation of Individual Variances
• The Profit Reconciliation System
• The Variance Analysis Report

Accounting for Capital Investment Decisions:

• The Long-term Objectives of a Business
• Capital Investment
• Collecting Data for Project Evaluation
• Evaluating Capital Investment Projects
• Pros & Cons of the Four Methods
• Qualitative Factors in Capital Investment Decisions

Interpretation & Assessment of Financial Information:

• Ratios & Comparative Analysis
• Gross & Net Profit Margins
• Primary Performance Ratios
• Return on Capital Employed (ROCE)
• Liquidity Ratios
• Working Capital Efficiency Ratios
• Efficiency Ratios for the Hotel Industry
• Capital Structure & the Risk-Return Relationship
• Cost-Volume-Profit Ratios
• Value-added Ratios
• Other Value-added Ratios
• Weaknesses of Ratio Analysis
• Accounting, Purchasing & Cost Control

Spreadsheet Applications in Accounting:

• The Value of Spreadsheets
• Common Commands & Functions
• Preparing the Final Accounts of a Theatre
• Preparing a Product Cost Structure
• Pricing Rooms Using the Hubbart Formula
• Graphing the Revenue & Cost Functions of a Travel Agency
• Graphing a Break-even Chart
• Preparing a Cash Budget
• Examining Alternative Purchase Options
• Comparing Two Hotels in Two Different Market Sectors

Reading List

Main Text:
Accounting for Hospitality, Tourism & Leisure (2nd edition) - Gareth Owen (Prentice Hall)