Hypothetical Situation:

Let's imagine a luxury hotel, "The Grand Hotel," located in the heart of the city. The hotel is known
for its excellent services, lavish interiors, and exquisite dining options. The hotel has 100 rooms,
including suites, and a restaurant that can accommodate 200 guests.

Guest and Non-Guest Accounts:

The front office accounting in a hotel involves maintaining guest accounts and non-guest accounts.
Guest accounts are those that belong to the guests who stay at the hotel, while non-guest accounts
belong to those who use the hotel's services but are not staying at the hotel.

For example, let's assume a guest, Mr. Smith, checks into the hotel on March 1st and stays for two
nights. He avails various services such as room service, laundry, and uses the hotel's restaurant
during his stay. At the same time, a non-guest, Mr. Brown, visits the hotel's restaurant for dinner on
March 2nd.

Guest Billing:

The hotel will create a guest account for Mr. Smith, which will include all the services he has availed
during his stay. The guest account will include the following charges:

 Room charges (room rate per night multiplied by the number of nights)

 Room service charges

 Laundry charges

 Restaurant charges

Assuming that Mr. Smith stayed in a deluxe room with a rate of $200 per night, his guest account will
be as follows:

Room charges: $200 x 2 nights = $400 Room service charges: $50 Laundry charges: $75 Restaurant
charges: $150

Total charges: $675

Mode of Settlement of Guest's Bill:

When Mr. Smith checks out, he can settle his bill through various modes of payment, such as cash,
credit card, or through a direct billing arrangement with his company. If he chooses to pay by credit
card, the hotel will charge his credit card with the total amount due.

Visitors Paid Out:

Non-guest accounts, such as that of Mr. Brown, who visited the hotel's restaurant, are called visitors'
accounts. If Mr. Brown pays for his dinner using cash, the hotel will create a "Visitors Paid Out"
account. This account is maintained to record all the cash transactions at the front desk.

Visitors Tabular Ledger:

Finally, the hotel will prepare a "Visitors Tabular Ledger." This ledger is used to record all the
transactions related to non-guest accounts such as Mr. Brown's dinner. The ledger will include the
following information:

 Date of the transaction

  Name of the non-guest

 Type of service availed (in this case, dinner)

 Amount paid

 Mode of payment (in this case, cash)

The books of accounts for the hypothetical situation at the Grand Hotel would include the following:

1. Guest Ledger: This ledger will contain the guest account of Mr. Smith, including all the
services he availed during his stay.

2. Cash Ledger: This ledger will record all the cash transactions at the front desk, including the
Visitors Paid Out account for Mr. Brown's dinner.

3. Credit Ledger: This ledger will record all the credit card transactions at the front desk,
including the payment made by Mr. Smith.

4. Visitors Tabular Ledger: This ledger will record all the transactions related to non-guest
accounts such as Mr. Brown's dinner.

Overall, the front office accounting at a hotel involves the efficient management of guest and non-
guest accounts, billing, mode of settlement of guest's bills, visitors' paid out, and visitors tabular
ledger. Proper maintenance of these accounts is crucial for the hotel's financial success and to
provide excellent customer service to its guests.
Once upon a time, in a luxurious hotel named 'Grand Royal,' the front office accounting was
meticulously managed to ensure smooth operations and happy guests. The hotel had 200 rooms, a
grand lobby, a fancy restaurant, and a bar. The front office accounting team had to handle guest and
non-guest accounts, guest billing, modes of settlement of guest bills, visitor's paid-out, and visitor's
tabular ledger. Let's dive into how the hotel's front office accounting worked.

Guest and Non-Guest Accounts:

Mr. and Mrs. Johnson arrived at the hotel for a three-night stay. Upon check-in, the front office staff
created a guest account for them. The guest account contained all the details of the guest's stay,
including the room type, number of nights, food and beverage orders, and any other services availed.

If a guest did not have a reservation, a non-guest account was created. For example, Mr. Smith, who
was not a guest at the hotel, visited the restaurant and had dinner worth $50. The front office
accounting team created a non-guest account for him and settled the account at the time of service.

Guest Billing:

On the day of checkout, the front office accounting team prepared the guest's final bill. For instance,
Mr. and Mrs. Johnson's final bill amounted to $1200, including room charges, food and beverage
orders, and other services availed.

Modes of Settlement of Guest Bills:

The hotel offered various modes of payment, including cash, credit card, debit card, traveler's check,
and direct billing to a company. Mr. and Mrs. Johnson opted to settle their bill using their credit card.
Once the payment was made, the front office accounting team updated the guest account and
closed it.

Visitor's Paid-Out:

Sometimes, visitors who were not staying in the hotel used the hotel's services and required
payment. For example, a guest from another hotel visited the hotel bar and ordered drinks worth
$80. The front office accounting team created a visitor's paid-out account for him, and he settled the
account before leaving the hotel.

Visitor's Tabular Ledger:

The visitor's tabular ledger contained all the visitor's paid-out accounts and was reconciled every day.
The front office accounting team ensured that all visitor's paid-out accounts were settled and
updated the ledger accordingly.

Now, let's prepare the hotel's books of accounts for a day, with the following hypothetical data:

1. Total revenue generated from room bookings: $15,000

2. Total revenue generated from food and beverage orders: $7,500

3. Total revenue generated from other services availed by guests: $2,500

4. Total revenue generated from visitor's paid-out: $300

5. Total direct billing revenue from companies: $1,000

Income Statement for the Day:

Revenue: Room bookings: $15,000 Food and beverage orders: $7,500 Other services availed by
guests: $2,500 Visitor's paid-out: $300 Direct billing revenue from companies: $1,000 Total revenue:
$26,300

Expenses: Salaries and wages: $6,000 Cost of goods sold (food and beverages): $3,500 Other
operating expenses: $2,000 Total expenses: $11,500

Net Income: $14,800

Balance Sheet for the Day:

Assets: Cash: $26,000 Accounts receivable: $2,500 Total assets: $28,500

Liabilities: Accounts payable: $4,500 Total liabilities: $4,500

Equity: Owner's equity: $24,000 Total equity: $24,000

The income statement and balance sheet

The Royal Hotel is a high-end hotel located in the heart of the city. The hotel has 200 rooms, a fine-
dining restaurant, a lounge, and several other amenities. The hotel caters to both business and
leisure travelers and is known for its impeccable service. The hotel's front office accounting team is
responsible for managing the finances of the hotel.

Guest and Non-Guest Accounts:

The front office accounting team maintains separate accounts for guests and non-guests. The guest
accounts are used to record all charges incurred by guests during their stay, while non-guest
accounts are used to record charges incurred by visitors who are not staying at the hotel.

For example, a guest staying at the hotel may order room service and charge it to their room. The
front office accounting team would record this charge in the guest's account. On the other hand, a
visitor who is not staying at the hotel may use the hotel's restaurant and pay for their meal using
cash or a credit card. The front office accounting team would record this charge in a non-guest
account.

Guest Billing:

At the end of their stay, guests receive a detailed bill that lists all the charges incurred during their
stay. The guest's account is updated to reflect any additional charges incurred after the initial check-
out date. The hotel sends the final bill to the guest's mailing address or email address as per their
preference.

Mode’s of Settlement of Guest’s Bill:

Guests can settle their bills using various modes of payment such as cash, credit cards, and traveler's
checks. The front office accounting team processes the payment and updates the guest's account
accordingly. In case of payment by cash, the team generates a receipt for the guest.
For example, Mr. John Smith stayed at the Royal Hotel for three nights and charged various services
to his room. His charges are as follows:

 Room charges: $1200

 Restaurant charges: $500

 Spa charges: $300

 Laundry charges: $200

His total bill comes to $2,200. He decides to settle his bill using his credit card. The front office
accounting team processes the payment and updates his account. His account is now settled.

Visitor’s Paid Out:

Visitors who are not staying at the hotel may request a paid-out for charges incurred during their
visit. For example, a visitor may use the hotel's business center and print documents, which they can
charge to their non-guest account. The visitor can settle their account by paying cash or by providing
a credit card for authorization.

For example, Ms. Sarah visited the Royal Hotel's business center and charged $100 for printing
documents. She decides to settle her account by paying cash. The front office accounting team
processes the payment and updates her account. Her account is now settled.

Visitor’s Tabular Ledger:

The front office accounting team maintains a tabular ledger for non-guest accounts. The ledger lists
all the non-guest transactions, including the date, the nature of the transaction, the amount charged,
and the mode of payment.

For example, the visitor's tabular ledger for Ms. Sarah's account is as follows:

Date Nature of Transaction Amount Charged Mode of Payment

01/01/22 Printing Documents $100 Cash

Conclusion:

In conclusion, the front office accounting team plays a critical role in managing the finances of a
hotel. By maintaining separate accounts for guests and non-guests, recording all transactions
accurately, and processing payments efficiently, the team ensures that the hotel's financials are in
order. The various books of accounts maintained by the team provide a detailed record of all
financial transactions and are crucial for accounting
Once upon a time, in a luxurious hotel, the front office accounting was meticulously managed to
ensure smooth operations and happy guests. The hotel had 200 rooms, a grand lobby, a fancy
restaurant, and a bar. The front office accounting team had to handle guest and non-guest accounts,
guest billing, modes of settlement of guest bills, visitor's paid-out, and visitor's tabular ledger. Let's
dive into how the hotel's front office accounting worked.

Guest and Non-Guest Accounts:

When a guest checked into the hotel, a guest account was created. This account contained all the
details of the guest's stay, including the room type, number of nights, food and beverage orders, and
any other services availed. The front office accounting team had to ensure that the guest account
was accurate and up-to-date.

If a guest did not have a reservation, a non-guest account was created. This account contained all the
details of the services availed by the guest, such as food and beverage orders, spa services, and other
amenities. The non-guest account was settled at the time of service.

Guest Billing:

When a guest checked out, the front office accounting team prepared the guest's final bill. The bill
included the room charge, food and beverage orders, spa services, and any other services availed.
The guest could settle the bill using various modes of payment.

Modes of Settlement of Guest Bills:

The hotel offered various modes of payment, including cash, credit card, debit card, traveler's check,
and direct billing to a company. If a guest opted for direct billing, the hotel had to verify the
creditworthiness of the company and obtain an authorization letter from the company.
Once the payment was made, the front office accounting team updated the guest account and
closed it. If the guest had any outstanding payments, the team had to follow up and collect the
payment.

Visitor's Paid-Out:

Sometimes, visitors who were not staying in the hotel used the hotel's services and required
payment. In such cases, the front office accounting team created a visitor's paid-out account. The
account contained all the details of the services availed by the visitor and the mode of payment. The
visitor had to settle the account before leaving the hotel.

Visitor's Tabular Ledger:

The visitor's tabular ledger contained all the visitor's paid-out accounts and was reconciled every day.
The front office accounting team ensured that all visitor's paid-out accounts were settled and
updated the ledger accordingly.

Now, let's take a hypothetical scenario to understand how the front office accounting worked. Mr.
and Mrs. Smith checked into the hotel for three nights. They booked a deluxe room, and their room
rate was $200 per night. They also availed of room service and ordered food worth $100 and $50
worth of spa services. Their total bill amounted to $950. Let's see how the bill was settled.

On the day of checkout, Mr. and Mrs. Smith settled the bill using their credit card. The front office
accounting team updated their guest account and closed it. The hotel also had a visitor who used the
bar's services and required payment. The visitor settled their account using cash.

At the end of the day, the front office accounting team reconciled the visitor's tabular ledger and
ensured that all visitor's paid-out accounts were settled. The team also prepared a daily revenue
report that contained all the details of the hotel's revenue for the day.

In conclusion, the hotel's front office accounting was crucial in ensuring smooth operations and
happy guests. The team had to handle guest and non-guest accounts, guest billing, modes of
settlement of guest bills, visitor's paid-out, and visitor's tabular ledger. With proper management and
accurate accounting, the hotel was able to provide excellent