ACCOUNTING IN THE HOSPITALITY INDUSTRY: A CASE STUDY OF JOE-CONTINENTAL HOTEL
ABSTRACT
This research work has been designed purposely to determine the ways in which hotels keep proper accounting records.  Hotels are industries that provide hospitality to people, making them have a home away from their normal homes; they are mostly a tourist sight for visitors in the country.  They provide services such as rooms, meals and transportation and project the image of the country, in return for payment.
The central goal of this study is to bring to focus the relevance of accounting department to management efficiency in day to day running of the hotels.  Recognize its scope and areas of problems, loopholes that could fraud.  The result f the study led to the researcher accepting and formulating hypothesis, using both primary and secondary method of data collection.  The researcher was able to conclude that accounting is of great importance not only to hotel industry but also to other industries, we hope that if the recommendations stated are followed religiously the hotel industry will stand the test of time and not liquidate.
TABLE OF CONTENTS
CHAPTER ONE
Introduction                                                                           
1.1              Background of the study                                           
1.2              Statement of Research Problem                                 
1.3              Objective of the study                                   
1.4              Significance of the study                                           
1.5              Limitation of the study                                  
1.6              Statement of hypothesis                                
1.7              Definition of terms                                        
1.8              Brief history of Joe-Continental Hotel Ltd.              
CHAPTER TWO
Literature Review                                                                  
2.1              Historical Development of Accounting         
2.2              Development in Accounting Standard and Procedures
2.3              Accounting                                                                
2.4              Accounting as part of Internal Control                      
2.5              The Role, Relationship of the Accountant    
2.6              The Accounting Division of Joe Continental Hotel Ltd.
CHAPTER THREE
Research Methodology
3.1              Research Design                                                        
3.2              Area of the study                                                       
3.3              Population of the study                                                         
3.4              Sample and sampling procedures                               
3.5              Instrument for data collection                                   
3.6              Validity of the study
3.7              Reliability of the study                                              
3.8              Method of administration of instruments                  
3.9              Method of data analysis.                                                       
CHAPTER FOUR
4.0              Data Analysis and Interpretation                   
4.1       Presentation of data                                                   
4.2              Test of hypothesis                                                      
CHAPTER FIVE
5.0              Summary, Conclusion and Recommendation            
5.1       Introduction                                                               
5.2              Summary of findings                                     
5.3              Conclusion                                                                             
5.4              Recommendation                                                       
Bibliography                                                  
Appendix.                                                                  
CHAPTER ONE
INTRODUCTION
1.1              BACKGROUND OF THE STUDY
Many people think of accounting as a highly technical field which can be understood only by professional accountants actually, nearly every one practices accounting in one form or another on an almost daily basis.  Accounting therefore is the art or system of measuring the results of business activities, communicating and interpreting financial activities.  Whether one is preparing a household budget, balancing one’s cheque book, preparing one’s income tax return or running general motors, one is working with accounting concepts and accounting information.
We live in an era of accountability.  Although accounting has made its most dramatic progress in the field of business, the accounting function is vital to every unit of our society.  An individual must account for his or her income and must file income tax returns.  Often an individual must supply personal accounting information in order to buy a car or home, to qualify for a college scholarship, to secure a credit card, or to obtain a bank loan.  Big corporations are accountable to their stockbrokers, to governmental agencies and to the public at large.
1.2              STATEMENT OF RESEARCH PROBLEM
According to Osuala (1982: 26), “the definition of problem is the most important part of a research and statement of problem serves vital information to the research also”.
One of the greatest challenges facing the hotel industry today, is the increasing incidence of lack of proper accountability, it has assumed a greater dimension in recent times, this kick of proper accountability has led to the failure and subsequently closure of a great number of hotels in Nigeria.  With this problem of proper accountability in hotel industry today, one would begin to ask questions.  The questions the researcher would be prompted to ask in the course of this study are as follows:
(i)                 Is accounting department effective?
(ii)               What role does accounting department play as part of internal control?
(iii)             What are the contributions of accounting department to the development of the hotel industry?
(iv)             What are the problems facing accounting department?
(v)               What are the procedures that are followed in carrying out accounting functions in hotel?
1.3              OBJECTIVE OF THE STUDY
The study is purposely meant to understand the modern way of accounting theory and practice as well as examine the disparity and relationship between the work of an accountant in the hotel industry and other industry.
To investigate and bring out the relative importance of accounting in hotels, examine the function of accounting department.  It also aims at analyzing the causes of problem encountered in carrying our accounting activities in hotels and to recommend a lasting solution.
1.4              SIGNIFICANCE OF THE STUDY
The study is significant to hotels with accounting department, most especially Joe-Continental Hotels of which the management can use to improve efficiency in the day to day running of the hotel, to keep proper books of account and returns.
This can also serve as vital information to the following groups of people.
-          Researcher
-          Students
-          Business community
-          Managers
-          Investors
1.5              SCOPE OF THE STUDY
This research work was limited to hotel industry alone and emphasis was laid on the accounting department of Joe-Continental Hotel Limited.
The financial data collected and used in the course of this research work covers the period between 202 – 2003.
1.6              STATEMENT OF HYPOTHESIS
Hypotheses are ideas, beliefs or assumptions put forward for the purpose of helping and guiding the researcher in achieving reasonable conclusions.  It is a tentative statement about reality that can either be supported or reduced on the basis of collected evidence or relevant information.  The statement of hypothesis becomes only accepted law or theory when proven so by collected evidence.
The study tends to examine the following hypotheses:
(1)        H0:       The success of the hotel is independent of the activities        of the accounting department.
H1:       The success of the hotel is dependent on the activities of the accounting department
(2)        H0:       The performance of the accounting department is     independent of technical support.
H1:       The performance of the accounting department is dependent on the technical support.
(3)        H0:       The measurement of profitability and efficiency is    independent of the activities of accounting department.
H1:       The measurement of profitability and efficiency is dependent on the activities of accounting department.
1.7              DEFINITION OF TERMS
Some key concepts have to be defined in that key will be used throughout the study and therefore ought to be understood.
Analysing:      This concerns the procedure of separating transactions into parts.
Communication: This is the transportation of the outcome of the operation on the financial data of a business or government to intended and interested users.
Transaction: This means business activities, such as sales of goods, purchases, payment and receipt of money, the incurring of an expense, etc.
Recording: This is the recording of financial transaction, event and situations affecting the unit.
Classifying: This involves the categorization of revenues and expenditure into account groups according to determined classification code.
Balance Sheet: A statement, which presents information about the financial position of an organization at a given point in time.
Capital: The excess of total assets over total liabilities funds provided by and belonging to the owners of the business.
Assets: The resources, which an individual or organization owns.
Current Assets: These are resources held in cash or in forms that can easily be converted into cash.
Fixed Assets: These are resources acquired for long lasting use rather than for resale at a profit.
Intangible Asset: These are assets that do not exist physically (e.g. goodwill) but which contribute substantively to the survival of an organization, which owns them.
Turnover: This refers to the net sales, that is the value of goods sold less returns (if any).  It may also be referred to as gross earnings.
Depreciation: This is the part of the cost of the fixed asset consumed during its period of use by the firm.
Liability: Something owed by the business (in its broader definition, liabilities include owner’s capital).
Debtor: A person or organization owing money to the business
Creditor: A person or organization to whom the business owes money.
Working Capital: The excess of current assets over current liabilities.
1.8              BRIEF HISTORY OF JOE CONTINENTAL HOTEL LIMITED
Joe Continental Hotels Limited is located along Agbani Road opposite Girls’ Grammar School Enugu, Enugu State, the hotel, which has existed since 1980 and its site houses 40 rooms and restaurant bar and casino to its credit.  The hotel was built as a result of people coming into the country and for traveling people from another place, and the demand for accommodation and place of rest become necessary.
The hotel as built with two storey building with the state of the art facilities, housing up to 40 rooms including executive suite, charlet and continental and local dishes too.  The hotel is being managed by Sam Nwokolo.