ABSTRACT
Within
the framework of this project topic is “Accounting procedure in hotels with
reference to Zodiac hotels Limited Enugu†The researcher has attempted to
explain the importance of Zodiac Accounting System as ways of helping
management to improve operations in the hotel business. However, recent
researcher have shown that one of the main causes of indigenous business
failure in this country is due to the failure to maintain proper accounting
records. This study is focused on the following identification problems Delay
in the preparation of final accounts monthly transcript, delay in the
statement: rate remittance/ cash transfers; inadequate method of revenue
collection and control, inadequate staffing. This research work is set to
proffer a solution to these constraints that militate against the effectiveness
of the establishment accounting system and its subsequent impact. Therefore, in
this project research work, an attempt was made to give solution to achieving
the objectives of this, various investigation instruments such as questionnaire
personal interview and percentage analysis were implemented in the collection
of data for the study and the result from them were used for the summary of
findings. Furthermore, in the researcher hopes that it will be of great help to
the regulatory authorities. The recommendations were based on research findings
and should not be note to be exhaustive. In conclusion, the researcher believes
that the predetermined objective of the study has been achieved. Thus, the need
to evaluated the benefits and manage the accounting procedure becomes more
essential. This is the enrollment of accounting and its efficiency and
effectiveness manifests the impact on the corporate organization.
TABLE
OF CONTENTS
Title
page
Approval
page
Dedication
Acknowledgment
Abstract
Table
of Contents
CHAPTER ONE: INTRODUCTION
1.1
Background of the Study
1.2
Statement of the Problem
1.3
Objective of the Study
1.4
Research Question
1.5
Significance of the Study
1.6
Scope of the Study
1.7
Limitation of the Study
1.8
Definition of Terms
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1
The Accounting Concepts
2.2
Accounting Conventions
2.3
Organisation of Accounts
2.4
Accounting practice/procedure
2.5
Chart of Accounts
CHAPTER THREE: RESEARCH DESIGN AND METHOD
3.1
Research Design
3.2
Area of Study
3.3
Population of Study
3.4
Sampling Method
3.5
Research Instrumentation
3.6
Validity and Reliability of Research
Instruments
3.7
Sources of Data
3.8
Methods of Investigation
CHAPTER FOUR: PRESENTATION AND
ANALYSIS OF DATA
4.1
Presentation and Analysis of Results.
CHAPTER FIVE: SUMMARY OF FINDINGS,
CONCLUSION AND RECOMMENDATION
5.1
Finding
5.2
Conclusion
5.3
Recommendations
Appendix
Bibliography
CHAPTER ONE
1.0 INTRODUCTION
Accounting
is an information system that is used for communication purposes and for the
purpose of aiding decision making.
According
to Bello
(2009), accounting is believed to be an information infrastructure used by
economic units to achieve various economic decision. Corporate organizations
use accounting to communicate to all stakeholders about their operation
performance and position at a particular time period. The process through which
companies communicate to the public about their operation is called financial reporting.
Corporate financial reporting is the medium through which companies
communication to the external society about their operational performance in
term of profitability, efficiency and responsibility (Abubakar, 2010, Nzekwe,
2000) financial reporting of a corporate entity constitutes a combination of
qualitative and quantitative financial reports, which are referred to as a
firm’s bill of health. Various stakeholders their decisions relative to a
firm’s performance and position based on the accounting information supplied by
if in its annual financial reports accounts.
Financial
reporting by companies is effected via the preparation and publication of
financial statements. These financial statements are required to exhibit
certain degree of quality in term of their information contents. Mines &
Wahlen (2006) and Belkaoui (2002) opined that accounting information contained
in the financial reports should possess certain qualities as relevance
verifiability, understanding, neutrality, timeliness, comparability, and
completeness. When the financial reports disclose quality accounting
information according to Benston (2007), the decision of the users (investors,
management, government, employees, creditors, analysis) of the report could as
well be qualitative are informed. The users of the financial reports use the
reports frequently in passing judgements on the viability of a company.
According to Ghofor & Saraswat; (2008), investors in many cases are too
dependent on the quality of information disclose in the financial reports of
companies has been an area of debate by both accounting theoreticians and those
in practice (Van Beest, Braim & Boelens, 2009).
New
Economy firms are defined as telecommunication, media and technology firms
(TMT).
A
large part of the assets in these firms are intangible since they are rely
strongly on intellectual capital,
research and develop, and other intangible assets (Lopes, 2001). In many cases
TMT firms majors assets is the human capital and the intellectual ability of
their work force. Although all firms need strong and competitive human
resources to succeed, the success of TMT firms largely depends on the quality
of human resource. The characteristics that differentiate successful
organization from their less successful counterparts in almost every industry
is the quality of the people they are able to get and keep. These TMT firms do
invest heavily in employee training to make sure that their employees skill
levels are kept current (Robbins, 2001). Robbins (2001) added that money spent
on improving employees capacity is one of the best investments that business
executives could make.
A
more recent debat in the financial accounting literature regards the relevance
of accounting information for firms of the so-called New Economy (Lopes, 2001).
Due to the failure of traditional accounting measures to recognize and measure
the intangible assets especially relevant for TMT firms it is argued that
accounting will lose relevance for valuation and users investment decision
purposes (Barth, Landsman & Lang, 2008; Lu & Clowes, 2004). Where a
firm is listed in the stock exchange market various stakeholders of the firm
accord more attention to the accounting information revealed by the firm in its
financial reports. Can we say that the accounting information of new economy
firms contained relevant information for decision making purposes? To what
extent does the accounting information of listed new economy firms in Nigeria,
dictate or influence the share price of the firms? This study therefore investigates empirically
the value relevance of accounting information of new economy firms in Nigeria.
In achieving so a null hypothesis is formulated and tested during the course of
the study.
The
hypothesis reads
Ho: The accounting information published by the
listed new economy firms in Nigeria does not significantly posses value
relevance for investment decision purpose.
1.1 BACKGROUND OF THE STUDY
Reynolds et al, have defined “Accounting as the
systematic recording, analysis and appraisal of financial data which results
from activities. Undertaken in pursuit of the objectives of the firm.
Thus,
accounting systems monitor revenues and expenditures and quickly establish the
firms position at particular lines.
Furthermore,
firms need to know the values of their fixed Assets (land, building, vehicles,
plant and equipments) and current asset (Stocks, debtors, work in progress, and
cash in hand). Because every transaction contributes to an increase or decrease
in assets it must therefore be recorded accurately and stored in easily
retrievable form. From the going accounts should show areas of inefficiency,
and reveal the exact lost of al the firms activities as accurate and detailed
accounts, will make policy formation easier and facilitate the well organized
implementation of corporate plans.
Accounting
has also been seen by Meigs (1975) consisting of gathering of financial and
other economic data, just as physical measurements are provided by the metric
system, economic measurements are provided by the accounting system, and are stated in financial terms.
These
economic measurement are put together in report of operations, and for decision
making by business units.
Thirdly,
accounting provides financial reports that
are needed by outside persons who invest in business units lend money to
them, or extend credit to them. It also furnishes reports to be used by
government agencies which regulate business and by tax authorities such as
internal revenue services profit must ensure that the correct amount of tax is
collected. When the unit of consideration is a non profit organization (such as
school, hospital, church or other charitable group), its members of those who
contribute to it need to know for what purposes and in what proportions their
money is being used.
This
important information is furnished by accounting
Thus
accounting can be referred to generally as a set of rules and methods by which
financial and economic data are collected, processed and summarized into
reports that can be used in making decisions, relating to the accomplishment of
organizational goals.
It
is important that the accounting systems for one man business should fulfill
such functions as providing essential financial information for the owners and
mangers in order for them to be able to manage the business in a competitive
environment, and to make informed decisions to prevent business failure and to
expand the business. However, owners of one man business may have particular
needs and conditions, so that accounting systems need to be flexible in order
not to impose unnecessary operative burdens because of the importance of
appropriate accounting information for owners and managers of one man
businesses and their different stakeholders, it is therefore important to this
study to analyze the types and amount of financial and various accounting
system applied in small businesses and its non-regulation in Nigeria.
The
practice of accounting came into existence many years ago though, there was no
acceptable definite record as to when accounting developed. It should be noted
that with the advent of colonial rule in Africa, the European system of
accounting was introduced in most of the African countries such as Nigeria.
Then,
different kinds of people were employed to take care of farms and properties of
the white man and after that, they have to account for their success so far to
their masters because there is a saying that “for every responsibility, there
is a saying that “for every responsible, there is always an accountability.â€
1.2 STATEMENT OF THE PROBLEM
This
research study entitled “Accounting procedure in Hotels will try to look into
the nature, process, system by which various hotels in Enugu State operate will
use of accounting systems and techniques taking a case study of Zodiac Hotel
Limited Enugu sub problem.
As
we all know that accounting is a living, practical course, there is need to
know the present practices of the profession in such areas, among other as:
1.
Working capital management
2.
Preparation and Payments of salaries and
wages
3.
Books of account
4.
Sales income
5.
Financial report and statement
6.
Assets
1.3 OBJECTIVE OF THE STUDY
I
have particularly involve myself in the operation of a hotel. Sit is known that
the researcher’s particular interest in hotel administration cannot be over
emphasized.
The
purpose or objectives of this research work is as follows:
(i)
To examine the forms they (Zodiac Hotel
Limit Enugu) take in presenting their transactions with other parties.
(ii)
To determine the accounting system by which
the hotel operates in terms of the “accounting concepts and conventions.
1.4 RESEARCH QUESTIONS
1.
What is the accounting procedure in most
hotels is adequate
2.
What is the accounting procedure used by
hotels affect the financial statement of the hotels.
1.5 SIGNIFICANCE OF THE STUDY
I
promise that at the completion of these project it will help others who have
not been opportuned which the hotels use.
For
the future researchers, the work will be useful and helpful to them because
they can make reference to it as they carry out their own work. It is worthy of
note that presently, the researchers work load is lessened because of the
guidelines on this topic that was made available for him.
1.6 SCOPE OF THE STUDY
Due
to time constraint and financial, the researcher has decided to confine himself
to accounting procedures in Zodiac Hotels limited Enugu. If not because of the
above reasons, I wanted have like to make comparison of many hotels.
1.7 LIMITATIONS OF THE STUDY
There
are many problems encountered by the researchers during the course of writing
of this project, the problem encountered were:
a.
Refusal of Respondent: The refusal of respondents to answer some of
important question that is relevant to the study.
b.
Financial:
The shortage of funds also affected the number of times: the researcher
would have to visit the organization in order to be through in examining all
the areas. Finance restricts the researcher from conducting accounting
procedures of other hotels within Enugu metropolis.
c.
Time:
The time delighted to this work was very short as a result of other
commitment; the researcher must have gone different places to get more samples
about the study.
1.8 DEFINITIOIN OF TERMS
(a) Accounting: The art of recording, classifying and
summarizing in a significant manner and in terms of money, transactions and events which are in part at least of a
financial character, and interpreting the results there to.
(b) Liability:
Debt which is owned by a company for goods and services supplied to her which
are not liquidated at the time of preparing the balance sheet.
(c) Asset:
Anything which is acquired by a business entity either for a long term use
within the company for the generation of income or for short term run used for
the purpose of convention into cash within a year.
Profit
the excess of the selling price over all cost and expenses incurred in
marketing the sale
(d) Financial
statement: A summary of figure, facts
showing the financial condition of a business.
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