Accounting for hospitality business

710 views 3 replies

TSI

Accountant

53 Points Joined February 2015

Please advice to book Total Sales in Hotel Business. My client has hotel and Sales streams are Restaurant, Banquet and Rooms Accommodation. For Banquet, Catering and Rooms we receive Advance payment which is later on adjusted against final bill.But since there are numerous transaction of Advance how to book Exact Sales?? I mean do we need to create Advance A/C for each customer and then later pass JE to convert this to income?

I would appreciate your response in regard to Accounting for Advance payment received and then converted to Sales ??

Replies (3)

CA Neelam Maheshwari

internal Auditor

497 Points Joined October 2012

1. Bank Dr. To customer and thn 2. Customer Dr. To sales.

vijay

Accounts Head

33 Points Joined July 2014

Hi,

You have to create detail accounts Heads like

1.Room Rent Received

2.Food Sales Ac

3.Advance received from Customer.

4.Customer Name if they are Credit parties.

5.Cash Account.

6.Bank Account.

7. Bill Settelment Account.

8.Service Tax Payable Account.

9.Luxuary Ax Payable Ac.

Now we will see the Daily entries.

1.If We received Rs.10000 booking advance by Cash vide Receipt no 109 from Mr.Arun.

BY Cash Rs.10000 DR

TO Advance Received from Customer 10000 Dr

( New Ref No 109 )

( We have enter the cusomer name and booking details like date and room number etc in narration/ for furture reconcilation )

2. Now We Settle the Bill to Mr.,Arun. bIll No 768

Room Rent 9000

Service Tax 668

Luxuary TAx 1200

Other Sales 1000

Total Bill 11868

Less:Advnace 10000

Settlement Amount 1868.

First We Make entry for Settlment .

BY Cash 1868 Dr

TO Settle ment Ac 1868 Cr

( Ref No:768 ) bill No

Then account the Bill.

By Advance Received from Customer 10000 Dr

(Agst Ref NO 109)advance recpt no

By Settlement 1868 Dr

(Agst Ref NO 768)BIll no

TO Room Rent Recd 9000 Cr

TO Service Tax payable 668 CR

TO Luxuary Tax payable 1200 CR

TO Other Sales Ac 1000 CR

( We have to enter the Room no and customer details and check in and check out details in narration).

Every day end the settlement account shows nill balance.

if we see the advance recd from customer account there are some receipt nos shows with the amount which is not adjusted against bill.

TSI

Accountant

53 Points Joined February 2015

Originally posted by : vijay
	Hi, You have to create detail accounts Heads like 1.Room Rent Received 2.Food Sales Ac 3.Advance received from Customer. 4.Customer Name if they are Credit parties. 5.Cash Account. 6.Bank Account. 7. Bill Settelment Account. 8.Service Tax Payable Account. 9.Luxuary Ax Payable Ac. Now we will see the Daily entries. 1.If We received Rs.10000 booking advance by Cash vide Receipt no 109 from Mr.Arun. BY Cash Rs.10000 DR TO Advance Received from Customer 10000 Dr ( New Ref No 109 ) ( We have enter the cusomer name and booking details like date and room number etc in narration/ for furture reconcilation ) 2. Now We Settle the Bill to Mr.,Arun. bIll No 768 Room Rent 9000 Service Tax 668 Luxuary TAx 1200 Other Sales 1000 Total Bill 11868 Less:Advnace 10000 Settlement Amount 1868. First We Make entry for Settlment . BY Cash 1868 Dr TO Settle ment Ac 1868 Cr ( Ref No:768 ) bill No Then account the Bill. By Advance Received from Customer 10000 Dr (Agst Ref NO 109)advance recpt no By Settlement 1868 Dr (Agst Ref NO 768)BIll no TO Room Rent Recd 9000 Cr TO Service Tax payable 668 CR TO Luxuary Tax payable 1200 CR TO Other Sales Ac 1000 CR ( We have to enter the Room no and customer details and check in and check out details in narration). Every day end the settlement account shows nill balance. if we see the advance recd from customer account there are some receipt nos shows with the amount which is not adjusted against bill. Thank You !!