Hotel Accounting Practice Exam

About Hotel Accounting
Accounting or Accountancy is the measurement, processing, and communication of financial and non financial information about economic entities such as businesses and corporations.

Regardless of the business size, Accounting in the perspective of Hotel Industry is all about recording and retrieving in & out cash-flow.
Separate accounts must be maintained for receipts like, Wines, Beer, and Spirits etc. and payments made against them, the balance being transferred to Profit and Loss Account.

Appropriate adjustments are also to be made for Meals, Laundry etc. between the staff and the proprietor for ascertaining correct result. For this purpose, Wages Account (for staff) and Drawings Account (for proprietors) will be debited and the particular account, say, Meal, will be credited. Besides, all kinds of transfer from one section to another is to be maintained accordingly.

Expenses are to be apportioned among the different sections in an appropriate manner and consequently the same will be adjusted in Profit and Loss Account.

Hotel Accounting involves summarizing, reporting and analyzing the hotel’s financial position for a particular period, further helps in budgeting, forecasting and future cost planning.

Why is Hotel Accounting important?
The Hotel Accounting provides many  benefits, as

•    Better Cost Management
•    Revenue Enhancement - Hotel owners be able to maximize their revenue by easily analyzing and optimizing their cashflow, while streamlining their budget and forecasting strategies.
•    Better Manpower utilization
•    Business Insights - An in-depth analysis help the hoteliers better utilize their data and identify their operating expenses and costs, department-wise.
•    Improved Operations - Financial streamlining is done for improving operations.
•    Financial statements are available which convey the financial position and performance of the hotel, for a certain period of time.
•    Better financial business decisions

Purpose of the Hotel Accounting Practice Exam

Hotel Accounting Practice Exam attests to your skills and knowledge in managing accounts for hotels, resorts and similar organizations in hospitality domain.

Who should take the Hotel Accounting Exam?
•    Accounting and finance professionals
•    Hotel owners
•    Anyone who wants to assess their hotel accounting skills
•    Accounting and finance managers and senior executives engaged in hospitality or hotels
•    Accounting  consultants
•    Any professional with skills and knowledge on hotel accounting
•    Anyone interested in hotel accounting

Hotel Accounting Practice Exam Objectives

Hotel Accounting exam focuses on assessing your skills and knowledge in maintaining accounts for hotel and similar organizations in hospitality domain.

Hotel Accounting Practice Exam Pre-requisite

There are no prerequisites for the Hotel Accounting exam. Candidate should be well versed  in financial accounting, book keeping, taxation and costing for hotel and similar organizations in hospitality domain to clear the exam.

Hotel Accounting Certification Course Outline

1. Meaning and Scope of Accounting
1.1 Meaning of Accounting
1.2 Accounting Terminologies
1.3 Basics of Bookkeeping and Accounting
1.4 Accounting concepts and principles
1.5 Concepts of Accounting
1.6 Conventions of Accounting
1.7 Branches of Accounting
1.8 Classification of Expenses, Income, Assets and Liabilities
1.9 Financial Statements
1.10 Systems of Accounting
1.11 Basis of Accounting
1.12 Source Documents
1.13 Journal
1.14 Methodology of Journalising
1.15 Advantages of Journal
1.16 Ledger
1.17 Trial Balance
1.18 Subsidiary Books
1.19 Purchases Books
1.20 Sales Book
1.21 Purchases Returns Book
1.22 Sales return Book
1.23 Bills Receivable Book
1.24 Bills Payable Book
1.25 Journal Proper
1.26 Cash Book
1.27 Classification of Cash Book
1.28 Bank Pass Book
1.29 Petty Cash Book
1.30 Imprest System
1.31 Bank Reconciliation Statement (BRS)
1.32 Methods of preparing Bank Reconciliation Statement
1.33 Rectification of Errors
1.34 Stages of Correction of Accounting Error
1.35 Suspense Account
1.36 Capital Expenditure and Revenue Expenditure
1.37 Capital Receipts and Revenue Receipts
1.38 Depreciation
1.39 Methods of Depreciation
1.40 Company Final Accounts
1.41 Essential Characteristics of a Company
1.42 Kinds of Joint Stock Companies
1.43 Shares
1.44 Capital of a Company Limited by Shares
1.45 Over-subscription and Under-subscription
1.46 Issue of Shares to Vendors
1.47 Surrender of Shares
1.48 Re-issue of Forfeited Shares
1.49 Redeemable Preference shares
1.50 Conversion of Shares

2. Taxation
2.1 Terminologies
2.2 Residential Status of an Entity
2.3 Income Tax Liability
2.4 Computation of Total Income
2.5 Heads of Income Tax
2.6 Taxability of Income
2.7 Income under the Head of House Property
2.8 Deduction from Gross Total Income
2.9 Income from Other Source
2.10 Advance Tax
2.11 Tax Deduction at Sourece (TDS)
2.12 Taxation Updates

3. Banking and Finance
3.1 Introduction
3.2 Banking Acts and Regulations
3.3 Types of Banks in India
3.4 Services offered by a Bank
3.5 Deposit Products
3.6 Mortgage and Loans
3.7 Banking Instruments
3.8 Clearing House
3.9 MICR - Magnetic Ink Character Recognition
3.10 Automated Teller Machine
3.11 Electronic Banking
3.12 Telebanking/Telephone Banking
3.13 Voice-Mail Facility
3.14 Plastic Money
3.15 Loan Scheduling and Development





4. Costing & Auditing
4.1 Introduction to Costing
4.2 Concept of Cost Accounting
4.3 Materials / Inventory Materials
4.4 Activity Based Costing (ABC)
4.5 Marginal Costing / Break Even Analysis
4.6 Variance Analysis
4.7 Introduction to Auditing
4.8 Book-Keeping, Accountancy and Auditing
4.9 Advantages of Auditing
4.10 Limitation of Audit
4.11 Purpose of Audit
4.12 Types of Auditing
4.13 Vouching
4.14 Valuation

Exam Format and Information
Certification name – Hotel Accounting Certification
Exam duration – 60 minutes
Exam type - Multiple Choice Questions
Eligibility / pre-requisite - None
Exam language - English
Exam format - Online
Passing score - 25
Exam Fees  - INR 1199