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Hospitality Accounting Question Paper

Hospitality Accounting

Course:Bachelor Of Science In Hospitality Management

Institution: Kenyatta University question papers

Exam Year:2009

KENYATTA UNIVERSITY
UNIVERSITY EXAMINATIONS 2008/2009
SECOND SEMESTER EXAMINATION FOR THE DEGREE OF BACHELOR
OF SCIENCE IN HOSPITALITY AND TOURISM MANAGEMENT
HTM 201-HIM 201: HOSPITALITY ACCOUNTING

DATE: Monday 7th September, 2009 TIME: 11.00 a.m. – 1.00 p.m.

INSTRUCTIONS
Attempt ALL questions in Section A and B. Attempt only ONE question in Section C. All
monetary value is in Kshs.

SECTION A
Q1.
What is the difference between the treatment of cash and credit purchases. [5 marks]
Q2.
Why is it NOT appropriate to use a stock account to record increases and decreases in stock? [5 marks]
Q3.
The owner of Jogoo restaurant has used shs.100,000 of wine from the restaurant cellar for his daughter’s wedding party. Which account would you post the expense? Explain your answer. [5 marks]
Q4.
What is “net current assets” and why is this figure so important? [5 marks]

SECTION B
Q5.
Ben Kuingwa opened a fast foods shop on 1st January, 2008. He invested 10,000 in the business. The following information was obtained from his accounting records at the end of the year. Purchases of goods for resale 7381; Sales 13311; Expenses 1172; Drawings 800; Stock in hand 410. What is the balance in Ben Kuingwa’s capital account at 31st December 2008. What is his gross profit? [20 marks]

SECTION C
Answer only one question from this Section.
Q6.
From the following statements which give cumulative effects of individual transactions, you are required to state as fully as possible what transaction has taken place in each case. The first column of data gives the opening position. Each of the other columns represents a transaction. Describe these transactions:

(from A to i)
Transaction:
A B C D E F G H I
Assets
Shs.000 000 000 000 000 000 000 000 000 000

450
450 450 450 575 575 275 275 275 275

95
100 100 100 100 100 100 100 100 100

48
48 48 48 48 48 48 48 48 48

110
110 110 110 110 110 110 110 110 93

188
188 188 188 188 108 108 108 108 120

27
22 22 172 47 127 427 77 77 77
15
15 11 11 11 11 11 11
3
3
933 933 929 1079 1079 1079 1079 729 721 716
Liabilities
Capital 621 621 621 621 621 621 621 621 621 616
Loan from Lee 200 200 200 350 350 350 350
Creditors 112 122 108 108 108 108 108 108 100 100
933 933 929 1079 1079 1079 1079 729 721 716
[20 marks]
Q7.
G. Handa started an outside catering business with shs.40,000 capital in cash. During the first year he kept very few records of his transactions. The assets and liabilities of the business as at 30th June, 2009 were:-
Freehold premises
76,000
Mortgage on the premises
50,000
Stock 24,000
Debtors
2,800
Cash and Bank Balances
5,400
Creditors
7,600
During the year Handa withdrew 9000 cash for his personal use but he also paid 6,000 received from the sale of his private car into the Business bank account. From the above information prepare a balance sheet showing the financial position of the business as at 30th June, 2009 and indicating the net profit for the year.

Hospitality Accounting Question Paper

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