TUT: HOSPITALITY MANAGEMENT

HFM105D

ACTIVITY 4

QUESTION 4 26 marks

The following transactions occurred for a new hotel prior to and during the first month of March’s
business operation.

Date: July 2019

1. The owner, Mr Temba, invested R300 000 of his own cash and deposited this into the
business bank account.
2. Mr Temba borrowed R430 000 from ABC loans
3. He paid R410 000 cash for land and buildings
4. Equipment was purchased for R54 000 for cash
5. Supplies were purchased for R2 600 on account
6. Room revenue for the month was R22 000
7. Wages and salaries of R45 000 were paid
8. Mr Temba paid R2 600 on accounts payable
9. The owner paid R60 000 on the loan payable
10. Purchased food and beverages cash R5 000
11. Sold one room on credit to Mr Mmola for R450

22. Interest on loan of R4 000 was paid

30. He paid R4 500 on water and electricity

Required:

Record the transactions properly in the General Ledger accounts of the General Journal.

Make use of the template attached.

PS: No 1 is included as an example. Remember two accounts per transaction.

General Ledger Accounts

Date Explanation P/R Debit Credit Balance

1 Bank R300 000

Capital: Mr R300 000
Temba