Explain the difference between a sole trader, a partnership and a limited company.

Aims :

The aim of this unit is to develop learners` understanding of fundamental accounting principles for those working in a managerial role in the hospitality, leisure, travel and tourism sector. The unit considers the constraints of local, national and international contexts on business structure, objectives and environment.

Learning Outcome 1: Clarify the purpose of accounting and finance in the context of a tourism or hospitality organisation.

Learning Outcome 2: Explain the difference between a sole trader, a partnership and a limited company.

Learning Outcome 3: Explain the difference between the private sector and the public sector in terms of ownership and objectives.

Learning Outcome 4: Assess how financial software can support the accounting functions of Tourism and Hospitality organisations.

Prepare documents involved in financial transactions based on accounting principles.

2.1 Explain the rules of double entry book keeping including the maintenance of records.

2.2 Calculate and correctly account for VAT on purchases and sales.

2.3 Prepare cash receipts, cash payments and bank reconciliation. .

Prepare a Statement of Comprehensive Income and a Statement of Financial Position.

3.1 Construct a simple trial balance from given information.

3.2 Prepare a Statement of Comprehensive Income.

3.3 Prepare a Statement of Financial Position.

Understand how an organisation should manage its fixed working capital.

4.1 Classify the types and sources of finance available to a business and the ways in which a business raises capital.

4.2 Explain the reasons for, and process of budgetary control.

4.3 Prepare a cash budget.