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Hotel accounting

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This query is : Resolved

bipinchandra (Querist)

23 February 2016 whether this exps are direct or indirect for hotel and restaurant ? rent paid for building electric bill of hotel telephone bills cable connection bill for guest rooms salary of house keeping staff front office staff restaurant staff like cook chef , waiter , caption etc. i hope that i will get reply from expert . exps for water softener
thank you

Suresh Ramaswamy

Suresh Ramaswamy (Expert)

28 February 2016 All the above mentioned expenses are direct expenses for a hotel are restaurant. Direct expenses are those expenses which are required for day to day operation or day to day manufacturing activities of a concern. In the case of a hotel, you need premises - rented or owned, electricity charges consumed by the hotel for its business, telephone bills either for the hotel or used by guests, house keeping staff for maintenance of guest rooms, Restaurant and kitchen staff for supply of food and beverages, water softener for supply of potable / usable water in the rooms and restaurant - all these expenses are direct in nature. However, the cost of the Water Treatment Plant is a capital expenditure and the depreciation thereon an indirect expense.

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