StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Finance and Accounting in Hospitality Management - Assignment Example

Cite this document
Summary
Visitors can stay at the countryside retreat or they can also stay at the heart of the city. As desire and expectation of every customer is…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful
Finance and Accounting in Hospitality Management
Read Text Preview

Extract of sample "Finance and Accounting in Hospitality Management"

Finance and Accounting Financial Report (hospitality managment) Contents Contents 2 Introduction 3 Analysis of Profit and loss account of period 3 3 Analysis of Profit and loss account of period 4 4 Analysis of Profit and loss account of period 5 5 Forecast of the banquet department of Crewe Hall for Period 6 5 Forecast of the banquet department of Crewe Hall for Period 7 6 Forecast of the banquet department of Crewe Hall for Period 8 7 Conclusion 7 References 9 Mittal, R., 2011. Management Accounting and Financial Management. New Delhi: Vaibhav Printers. 9 Sinha., 2009. Financial Statement Analysis. New Delhi: PHI Learning Pvt Ltd. 9 Introduction Q Hotels group has 21 four star hotels in the United Kingdom and each of the hotel is having its unique characteristics and team of staff. Visitors can stay at the countryside retreat or they can also stay at the heart of the city. As desire and expectation of every customer is different thus this each hotel always provides a hand to help the visitors. The banquet department of Q Hotels can arrange more than 250 strong conferences with excellent executive lunch or dinner or both. It also arranges luxury wedding ceremonies. Q hotels are very popular in UK and have won many awards for the outstanding performance and excellent customer service. Here we will analyze the actual and budgeted profit and loss account of Q hotels for the period of 3, 4 &5 and the forecasted sheet for the period of 6, 7 & 8. Budgeting is very much necessary for an organization and especially for a hotel. Thus analysis of comparison between actual performance and the budgeted performance is needed to analyze to determine the effectiveness of the hotel in the hospitality industry. Analysis of Profit and loss account of period 3 As we are focusing on the banquet department thus our analysis will based on the on the department in the P&L account of Food. From the P&L account of period 3 it can be seen that actual total income from lunch in this period is 23.5 and the budgeted income was 23.0. Thus it can be seen that the actual income is higher than the budgeted income which shows that the banquet department has performed well in earning income from conference lunch. The total income from lunch in the previous in the same period was 24.6. Thus it showing that total income from lunch has decreased over the years. Total banqueting income is 49.2 in this period of 28 days ended at 30th march 2014. The budgeted income from banqueting activity was 75.3. Thus it can be seen that Crewe Hall has earned a total budget deficit of 26.1. The total income from banqueting activities in the previous year in the same period was 72.0 thus the earnings have decreased by 22.8. The gross profit of the company is 100.9 where as the budgeted gross profit was 124.4. Thus a budget deficit of 23.4 has incurred by the company. The gross profit of the hotel in the previous year in the same period was 117.9. It is also indicating that the gross profit of the company has decreased by 16.9 in this year. The net profit to the theoretical gross profit is 0.3. Analysis of Profit and loss account of period 4 Now we will analysis the profit and loss account of period 4 which is of 28 days ending at 27th April 2014. From the P&L account of period 4 it can be seen that actual total income from lunch in this period is 18.7 and the budgeted income was 18.5. Thus it can be seen that the actual income is higher than the budgeted income which shows that the banquet department has performed well in earning income from conference lunch in the month of April. The total income from lunch in the previous in the same period was 15.2. Thus it showing that total income from lunch has increased over the years by 3.5. Total banqueting income is 36.3 in this period of 28 days ended at 30th April 2014. The budgeted income from banqueting activity was 53.5. Thus it can be seen that Crewe Hall has earned a total budget deficit of 17.2. The total income from banqueting activities in the previous year in the same period was 50.4 thus the earnings have decreased by 14.2. The gross profit of the company is 94.9 where as the budgeted gross profit was 101.0. Thus a budget deficit of 7.1 has incurred by the company. The gross profit of the hotel in the previous year in the same period was 91.1. It is also indicating that the gross profit of the company has increased by 3.8 in this year. It can also be seen that gross profit of the gross profit has decreased from the previous month of March. The net profit to the theoretical gross profit is 0.2. Analysis of Profit and loss account of period 5 Now we will analysis the profit and loss account of period 5 which is of 35 days ending at 1st June 2014. From the P&L account of period 5 it can be seen that actual total income from lunch in this period is 25.4 and the budgeted income was 20.2. Thus it can be seen that the actual income is higher than the budgeted income by 5.2 which shows that the banquet department has performed well in earning income from conference lunch in the month of May. The total income from lunch in the previous in the same period was 22.2. Thus it showing that total income from lunch has increased over the years by 3.2. Total banqueting income is 61.7 in this period of 35 days ended at 1st June 2014. The budgeted income from banqueting activity was 74.7. Thus it can be seen that Crewe Hall has earned a total budget deficit of 13.0. The total income from banqueting activities in the previous year in the same period was 67.9 thus the earnings have decreased by 6.2 in this year. The gross profit of the company is 130.9 where as the budgeted gross profit was132.5. Thus a budget deficit of 1.6 has incurred by the company. The gross profit of the hotel in the previous year in the same period was 122.2. It is also indicating that the gross profit of the company has increased by 8.7 in this year. It can also be seen that gross profit of the gross profit has increased from the previous month of April. The net profit to the theoretical gross profit is 2.5. Forecast of the banquet department of Crewe Hall for Period 6 From the forecasting sheet of Crewe Hall of period 6 it can be seen that the earnings of the food department which also includes the banqueting activities will be 67.7. The budgeted earning is 69.6. Thus there is chance of budget deficit of 1.9 might occur in the 6th period. In the previous year the earnings was 53.2. Thus the forecasted income is higher than the income of the previous year from the food department of Crewe Hall. The forecasted total revenue for this period is 637.4 where as the budgeted income is 653.1. Thus budget deficit of 15.7 might occur as per the forecasted revenue. The total revenue of this period in the previous year was 590.3 thus it can be seen that total revenue has increased by 47.1. The forecasted total gross profit is 534.9 and the budgeted total gross profit is 547.7. It indicates that budget deficit of 12.8 might be incurred by Crewe Hall. The total gross profit of the previous in the same period was 331.3 thus it can be expected that gross profit will increase by 19.8. Forecast of the banquet department of Crewe Hall for Period 7 From the forecasting sheet of Crewe Hall of period 7 it can be seen that the earnings of the food department which also includes the banqueting activities will be 69.6. The budgeted earning is 70.5. it indicates that the total earnings from the food department will increase from the period 6 to period 7.But there is chance of budget deficit of 0.9 might occur in the 7th period. In the previous year the earnings was 56.5. Thus the forecasted income is higher by 13.1 than the income of the previous year from the food department of Crewe Hall. The forecasted total revenue for this period is 648.2 where as the budgeted income is 653.5. It also indicates that the total revenue of 7th period has increased from the income 6th period. But there is chance of budget deficit of 5.3 might occur as per the forecasted revenue. The total revenue of this period in the previous year was 582.4 thus it can be seen that total revenue has increased by 65.8. The forecasted total gross profit is 541.5 and the budgeted total gross profit is 547.8. Gross profit of this period will increase as compared to the previous period. But it indicates that budget deficit of 6.3 might be incurred by Crewe Hall. The total gross profit of the previous in the same period was 489.5 thus it can be expected that gross profit will increase by 52. Forecast of the banquet department of Crewe Hall for Period 8 From the forecasting sheet of Crewe Hall of period 8 it can be seen that the earnings of the food department including the banqueting operations will be 63.2. The budgeted earning is 63.0. it indicates that the total earnings from the food department will decreased from the period 7 to period 8.But there is chance of budget surplus of 0.2 might occur in the 8th period. In the previous year the earnings was 57.7. Thus the forecasted income is higher by 5.5 than the income of the previous year from the food department of Crewe Hall. The forecasted total revenue for this period is 667.0 where as the budgeted income is 672.6. It also indicates that the total revenue of 8th period will increase from the income 6th period. But there is chance of budget deficit of 5.6 might occur as per the forecasted revenue. The total revenue of this period in the previous year was 636.0 thus it can be seen that total revenue will increase by 31. The forecasted total gross profit is 558.6 and the budgeted total gross profit is 564.6. Gross profit of this period will increase as compared to the previous period. But it indicates that budget deficit of 6.0 might be incurred by Crewe Hall. The total gross profit of the previous in the same period was 529.7 thus it can be expected that gross profit will increase by 28.9. Conclusion From the above study it can be seen that we have analyzed the profit and loss account of Crewe hall of Q hotel for the period of 3, 4 & 5. It has shown that the gross profit of 4th period has decreased from the gross profit of 3th period. It indicates that the performance and effectiveness of the banquet has decreased in this period as compare to the previous period. But then it has again increased in the 5th period indicating that the efficiency and effectiveness of the hotel has increased in the month of May. The forecasted gross profit of 6th period is much higher than the actual gross profit of the period 3, 4 & 5 indicating that the performance of the banquet department will increase in future. The forecasted gross profit of 7th period is also higher than the gross profit of 6th period and the forecasted gross profit of 8th period is higher than the forecasted gross profit of 7th period. Thus the increase trend in gross profit indicates that the overall performance of the banquet department will increase in the future which will lead the gross profit to increase in the coming period. References QHotels., 2014. WHAT DO YOU KNOW ABOUT QHOTELS?. [Online]. Available at: http://www.qhotels.co.uk/about-us/. [Accessed on July 1, 2014]. Thukaram, R., 2007. Management Accounting. New Delhi: New Age International. Mittal, R., 2011. Management Accounting and Financial Management. New Delhi: Vaibhav Printers. Sinha., 2009. Financial Statement Analysis. New Delhi: PHI Learning Pvt Ltd. Barry., 2010. Introductory Financial Accounting And Reporting. USA : McGraw-Hill International. . Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Financial Report (hospitality managment) Assignment, n.d.)
Financial Report (hospitality managment) Assignment. https://studentshare.org/finance-accounting/1833221-financial-report-hospitality-managment
(Financial Report (hospitality Managment) Assignment)
Financial Report (hospitality Managment) Assignment. https://studentshare.org/finance-accounting/1833221-financial-report-hospitality-managment.
“Financial Report (hospitality Managment) Assignment”. https://studentshare.org/finance-accounting/1833221-financial-report-hospitality-managment.
  • Cited: 0 times
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us