ABSTRACT
Within the framework of this project, the
topic is “Accounting procedure in hotels concerning Zodiac hotels Limited
Enugu” The researcher has attempted to explain the importance of the Zodiac
Accounting System as a way of helping management to improve operations in the
hotel business. However, recent researchers have shown that one of the main
causes of indigenous business failure in this country is 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 established 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, 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 noted to be exhaustive. In
conclusion, the researcher believes that the predetermined objective of the
study has been achieved. Thus, the need to evaluate the benefits and manage the
accounting procedure becomes more essential. This is the enrollment of
accounting and its efficiency and effectiveness manifest the impact on the
corporate organization.
TABLE OF
CONTENTS
Title page
Approval page
Dedication
Acknowledgement
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 to aid decision making.
According to Bello (2009), accounting is
believed to be an information infrastructure used by economic units to achieve
various economic decisions. Corporate organizations use accounting to
communicate to all stakeholders about their operational performance and
position at a particular 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 communicate
to the external society about their operational performance in terms 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 affected
via the preparation and publication of financial statements. These financial
statements are required to exhibit a certain degree of quality in terms 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
disclosed 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 rely strongly on intellectual capital, research and
development, and other intangible assets (Lopes, 2001). In many cases, TMT
firms majors assets is the human capital and the intellectual ability of their
workforce. Although all firms need strong and competitive human resources to
succeed, the success of TMT firms largely depends on the quality of the human
resource. The characteristics that differentiate the successful organization
from their less successful counterparts in almost every industry is the quality
of the people they can get and keep. These TMT firms do invest heavily in
employee training to make sure that their employee’s 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 debate 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 study.
The hypothesis reads
Ho: The accounting information published by
the listed new economy firms in Nigeria does not significantly possess value
relevance for investment decision purposes.
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 firm’s position at particular lines.
Furthermore, firms need to know the values of
their fixed assets (land, building, vehicles, plant and equipment) and current
assets (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 loss of all
the firm’s 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)
as consisting of the 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 measurements are put together
in reports 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 that 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
a school, hospital, church or another 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.
The accounting systems for one-man business
must fulfil such functions as providing essential financial information for the
owners and managers 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 the 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.”
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 accounting systems and
techniques taking a case study of Zodiac Hotel Limited Enugu subproblem.
As we all know that accounting is a living,
practical course, there is a need to know the present practices of the
profession in such areas, among others 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 involved myself in the
operation of a hotel. Sit is known that the researcher’s particular interest in
hotel administration cannot be overemphasized.
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 after these projects it will
help others who have not been opportune which the hotels use.
For future researchers, the work will be
useful and helpful to them because they can refer to it as they carry out their
work. It is worthy of note that presently, the researcher’s workload is
lessened because of the guidelines on this topic that was made available for
him.
1.6 SCOPE OF THE STUDY
Due to time constraints and finances, the
researcher has decided to confine himself to accounting procedures in Zodiac
Hotels limited Enugu. If not because of the above reasons, I wanted to have
like to make a comparison of many hotels.
1.7 LIMITATIONS OF THE STUDY
There are many problems encountered by the
researchers during the writing of this project, the problem encountered was:
a. Refusal of Respondent: The refusal of respondents to answer some of
the importance.