Tle He Fos q3 Module3

9
TLE – HE – FRONT OFFICE

SERVICES
Quarter 3 – Module 3
CONDUCT NIGHT AUDIT
Process Financial Transactions
NegOr_Q3_FOS9_Module3_v2
TLE – Grade 9
Alternative Delivery Mode
Quarter 3 – Module 3: Conduct Night Audit
Process Financial Transactions
Second Edition, 2021
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Published by the Department of Education

Secretary: Leonor Magtolis Briones
Undersecretary: Diosdado M. San Antonio
Development Team of the Module

Writer: Pamela May A. Cadorna
Editors: Joseph S. Mapili and Ivah Mae C. Estoconing
Reviewers: Gina S. Zerna & Joseph S. Mapili
Typesetter: Joseph S. Mapili
Management Team: Senen Priscillo P. Paulin, CESO V Rosela R. Abiera
Joelyza M. Arcilla, Ed.D Maricel S. Rasid
Marcelo K. Palispis, Ed.D Elmar L. Cabrera
Nilita L. Ragay, Ed.D
Antonio B. Baguio, Jr., Ed.D.
Printed in the Philippines by ________________________
Department of Education –Region VII Schools Division of Negros Oriental
Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

Tele #: (035) 225 2376 / 541 1117
E-mail Address: negros.oriental@deped.gov.ph
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our

dear learners, can continue your studies and learn while at
home. Activities, questions, directions, exercises, and
discussions are carefully stated for you to understand each
lesson.
Each SLM is composed of different parts. Each part shall guide
you step-by-step as you discover and understand the lesson
prepared for you.
Pre-tests are provided to measure your prior knowledge on
lessons in each SLM. This will tell you if you need to proceed on
completing this module or if you need to ask your facilitator or
your teacher’s assistance for better understanding of the lesson.
At the end of each module, you need to answer the post-test to
self-check your learning. Answer keys are provided for each
activity and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher
are also provided to our facilitators and parents for strategies and
reminders on how they can best help you on your home-based
learning.
Please use this module with care. Do not put unnecessary marks
on any part of this SLM. Use a separate sheet of paper in
answering the exercises and tests. And read the instructions
carefully before performing each task.
If you have any questions in using this SLM or any difficulty in
answering the tasks in this module, do not hesitate to consult
your teacher or facilitator.
Thank you.
What I Need to Know
This module was designed and written with you in mind. It is here to help
you master the nature of Processing Financial Transactions. The scope of
this module permits it to be used in many different learning situations. The
language used recognizes the diverse vocabulary level of students. The
lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the
textbook you are now using.
After going through this module, you are expected to:
1. Discuss the types of hotel financial transactions.
2. Familiarize the processes involve in a financial transaction.
3. Appreciate the processes of accounting cycle.
ii NegOr_Q3_FOS9_Module3_v2
What I Know
Direction: Write the letter of the correct answer on your answer sheet. Write it on
your activity notebook.
1. This is issued to a salesperson and serves as a record of specific sales.

a. Commission Voucher c. Charge Voucher
b. Petty Cash d. Allowance
2. This is used to support a charge purchase transaction that takes place
somewhere other than the front office.
3. It is usually a small form used to document a disbursement (payment).
4. Used to support an account allowance
5. Used to support cash flow out of the hotel, either directly to or on behalf of
the guest
a. Cash advance Voucher c. Charge Voucher
6. It is used to record cash or bank receipt. It represents receipt of cash in
hand.
b. Cash receipt d. Allowance
7. The transactions in which property is transferred from seller to buyer for
money or credit as in car sales or from service provider to clients or guest as
in hotels, spas, and resorts
a. Sales c. Receipts
b. Purchases d. Payments
1
8. The transactions that are required by a business in order to obtain the
goods or services needed to accomplish the goals of the organization
9. A written acknowledgement of having received or taken into ones
possession a specified amount of goods or money.
10. The transactions that refer to a business receiving money for a good or
service
11. The account or account name can either be the type of account as in
the example above or it can refer to the account holder's name which
could be the name of the hotel’s guest.
a. account number c. account
b. debit d. credit
12. A unique code composed of numbers, letters, or other characters, and is
assigned to the account to make it easier to be entered and accessed to
in a database.
b. balance d. credit
13. An entry recording an amount owed, listed on the left-hand side or
column of an account
b. debit d. credit
14. An entry recording a sum received, listed on the right-hand side or
column of an account
15. The difference between the sum of debit entries and the sum of credit
entries entered into an account during a financial period
2
Lesson
Process Financial
3 Transactions
The financial transactions of a business with its customers and clients is
tracked, recorded, and managed by the accounting section of the business or
organization. The accounting department is responsible for the financial health
and tracks the performance of the business directly.
In hotel businesses, accounting means managing expenses and revenue. It

provides clear information to the guests thus avoiding any unpleasant surprises to
the guests.
Notes to the Teacher

This contains helpful tips or strategies that will
help you in guiding the learners. The following
are information that would lead to the activities
and assessment. Some activities may need your
own discretion upon checking, or you may use
rubric if provided. Please review the activities
and answer keys and amend if necessary.
3 NegOr_Q3_FOS9_Module3_v2
What’s In
CROSSWORD
Direction: As a review of the previous lesson, cross out the types of hotel
computerized reservation system terms found in the word puzzle below.
What’s New
Directions: List down as many as you can the different vouchers that you know.
Write your answers in your notebook.
Example:
1. Cash Advance/ Deposit Receipt
What is It
Financial Transactions
Financial transactions between the guests and the hotel start at the time of
reservation or registration and ends at the checkout; the payment of reservation
fee, check-in down payment, payment for the use of facilities and services, and food
and amenities, all these constitutes a hotel’s financial transactions with its guests.
Financial transactions processing is more than merely the capturing of

financial data or performing accounting transactions, these are key procedures for
a hotel to be cost- and time-efficient and able to deliver high-quality services. These
procedures are carried out for processing and recording different types of
transactions.
Types of Financial Transactions
The four main types of financial transactions that occur in a business are
sales, purchases, receipts, and payments.
Types of Financial Transactions

Financial Transaction Definition
1. Sales the transactions in which property is
transferred from seller to buyer for
money or credit as in car sales or from
service provider to clients or guest as
in hotels, spas, and resorts. Sales
transactions are recorded in the
accounting journal for the seller or
service provider as a debit to cash or
accounts receivable and a credit to the
sales account.
Example: Marga stayed for a week-
long vacation at Hyatt Hotel and paid
the bill at the front desk prior to
checking out.
2. Purchases are the transactions that a business
must conduct in order to receive the
commodities or services required to
achieve the organization's objectives.
Cash purchases result in a debit to
the inventory account and a credit to
the cash account. The debit entry
would still be to the inventory
account, and the credit entry would be
to the accounts payable account if the
transaction was made with a credit
account.
For example, the ten air conditioning
units ordered two weeks ago as an
upgrade to some of Hotel Blanca's
room units arrived. It was paid in cash
at the time of delivery.
3. Receipts refers to a written acknowledgement of
receiving or taking possession of a
certain amount of goods or money.
Carl's receipt for the payment of the
meal he ordered for room service was
given to him by the cafeteria
employees.
4. Payments transactions that refers to a business
receiving money for a goods or
services. They are recorded in the
accounting journal of the business
issuing the payment as a credit to
cash and a debit to accounts payable.
Example: Anton called for a room
reservation at Highlands Hotel and
Resort. He gave the front desk clerk
his debit card number to pay for the
reservation fee.
6
The Accounting Cycle
The accounting section of a business manages the financial transactions of

the business with its customers and clients. The accounting department is the one
that directly oversees the performance of any business. In a hotel business,
accounting is managing expenses and revenue. It provides clear information to the
guests thereby avoiding any unpleasant surprises to the guests.
The front office accounting staff identifies, records, measures, classifies,

verifies, summarizes, interprets, organizes, and communicates financial
information for a hotel business in a systematic manner.
The objectives of accounting system are, among others, to:
1. accurately handle transactions between the guests and the hotel

2. track the transactions throughout the guest’s occupancy
3. monitor the guest’s credit limit
4. organize and report the transactional information
5. avoid possibility of any fraud
The accounting cycle is a collective process of identifying, analysing, and

recording the financial events of a business establishment. It is an 8-step
process that starts when a transaction occurs and ends with its inclusion in the
final statements.
The accounting cycle follows the following steps:
The Steps of the Accounting Cycle

Step Process
1. Identifying The first step in the accounting cycle of a hotel is the
transactions identification of those transactions that comprise a
bookkeeping event. This could be a sale, refund,
payment to a vendor, and others.
2. Recording of The recording of transactions in the journal is the
transactions second step in the cycle. The entries on the journal are
based on the data on the receipt of an invoice,
recognition of a sale, or completion of other economic
events.
3. Posting A transaction should be posted to an account in the
general ledger after it has been recorded as a journal
entry. The general ledger shows how all accounting
activities are broken down by account.
4. Unadjusted Trial After posting journal entries to the individual general
Balance ledger accounts, an unadjusted trial balance is
prepared. The trial balance ensures that total debits
equals to the total credits in the financial records.
5. Analyzing The fifth phase in the cycle involves analyzing
Worksheet worksheets and finding and modifying entries. To
Entries guarantee that debits and credits are equal, a
worksheet is produced. Adjustments will have to be
made if there are any differences.
6. Adjusting Adjusting entries are created as a result of worksheet
Worksheet corrections and the results of the passage of time. For
Entries example, an adjusting entry may accrue interest
revenue that has accrued over time.
7. Creating Financial Adjusting entries are created as a result of worksheet
Statements corrections and the results of the passage of time. For
example, an adjusting entry may accrue interest
revenue that has accrued over time.
8. Closing the Books At the end of the quarter, an establishment uses
closing entries to finish temporary accounts, revenues,
and expenses. Transferring net income into retained
earnings is one of the closing entries. Finally, a
business produces a post-closing trial balance to
check that the debits and credits are correct, and the
cycle begins again.
To better understand the steps discussed above, let us take a look at an

example of a ledger generally used during the financial cycle.
(Life n.d.)
The example shows the account is for the electricity expense of an

establishment. It shows data on what or whom the account is, the account
number, date of entry, details, reference number, debit, credit, and balance. See
definitions below.
8
Account—The account or account name can either be the type of account as in the
example above or it can refer to the account holder's name which could be the
name of the hotel’s guest.
Account number—A unique code composed of numbers, letters, or other

characters, and is assigned to the account to make it easier to be entered and
accessed to in a database.
Date of entry—The date when the transaction occurred or the data was entered
into the accounting system
Details—the information about the entry
Reference number—A unique identifier assigned to any financial transaction

including those made using a credit or debit card
Debit—An item on the left-hand side or column of an account that records an

amount owed. On a company's balance sheet, it is an accounting entry that leads
in either an increase in assets or a decrease in liabilities. It is an expense, or a sum
of money paid from an account, that causes an asset to grow or a liability to
shrink.
Credit—an entry recording a sum received, listed on the right-hand side or column
of an account. It decreases the value of an asset or increases the value of a liability.
The columns should be added across and down and the total debits should equal
the total credits
Balance—During a financial term, the difference between the total of debit and
credit entries entered into an account. The account shows a debit balance when
total debits exceed total credits.
The general ledger is the main ledger used in a business financial

accounting and contains all the accounts a business uses in its double entry
bookkeeping system. Its main purpose is to provide a permanent record of all
financial transactions and balances classified by account.
Data entered in the general ledger come from the different folios, a folio is a
statement of all transaction that has taken place in a single account, and vouchers,
the detailed documentary evidences for a transaction, used during hotel financial
transactions such as:
Types of folios
Guest folio—is assigned to charge for individual guests
Master folio—is assigned charge for group/organization
Non-guest folio—is assigned for non-resident guest
Employee folio—is assigned for hotel employee to charge against coffee shop
privileges
A folio is a record of all the transactions that have occurred in a single

account. The front desk personnel keeps track of all transactions between the guest
and the hotel on the folio. The folio starts with a zero balance and gradually builds
or drops as transactions occur. On payment settlement, the folio balance must
return to zero at the moment of check-out.
Vouchers and Types
A transaction's vouchers are detailed documentary evidences. It moves the

transaction from the back office to the front. Vouchers are used to alert the front
desk of a guest's purchase or use of any hotel service.
Some of the typical vouchers used in hotels are:
Cash Receipt Voucher—is used to record cash or bank receipt. It represents

receipt of cash in hand.
Commission Voucher—A commission voucher is a record of individual sales that

is given to a salesperson. Also known as supplier receipts, they are utilized when a
hotel or auto rental provider sends you a check.
Charge Voucher—is utilized to assist a charge buy transaction that does not take
place at the front desk.
Petty Cash Voucher—is usually a simple form used to document a petty cash fund
disbursement (payment). Petty cash vouchers, often known as petty cash receipts,
are readily available at office supply stores. It should have space for the following
information: the date and amount of the disbursement.
Allowance Voucher—is used to support an account allowance
Cash Advance Voucher— is used to support cash flow out of the hotel, either
directly to or on behalf of the guest
What’s More
Activity I
Direction: Match column A with column B. Write the letter of the correct answer
only.
A B
a. a. assigned for non-resident
1. Guest folio
guest
2. Employee folio b. b. assigned for hotel employee
to charge against coffee shop
privileges
3. Non-guest folio c. assigned to charge for
individual guests
4. Master folio d. assigned charge for
group/organization
5. Folio e. manages the financial
transactions of the business
with its customers and clients
6. Accounting section f. statement of the transactions
that has taken place in a
single account
Activity II. Using your electricity or water bill for the past 2 months, make a
sample account entry to a general ledger (15 points).
11
What I Have Learned
Directions: Write at least a two-paragraph essay about your learning on this

lesson/module using the following guide phrases.
I have learned that

__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
I have realized that
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
I will apply
__________________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________________________
Essay Rubrics
Areas of
Assessment 10 points 7 points 4 points 1 point
Presents ideas Presents ideas
in an original in a consistent Ideas are too Ideas are vague
Ideas manner manner general or unclear
Organization Strong and Organized Some No

organized beg/mid/end organization; organization;
beg/mid/end attempt at a lack
beg/mid/end beg/mid/end
Understanding Writing shows Writing shows a Writing shows Writing shows

strong clear adequate little
understanding understanding understanding understanding
Mechanics Few (if any) Few errors Several errors Numerous

errors errors
TOTAL POINTS: /40
12
What I Can Do
Directions: Arrange the steps according to the process one needed to follow in the
accounting cycle. Write it on your activity notebook.
______1. Creating Financial Statements
______2. Identifying transactions
______3. Analyzing Worksheet Entries
______4. Adjusting Worksheet Entries
______5. Closing the Books
______6. Recording of transactions
______7. Posting
______8. Unadjusted Trial Balance
Assessment
Directions: Multiple Choice. Choose the letter of the correct answer. Write this
activity on your answer sheet.
1. This is issued to a salesperson and serves as a record of specific sales.

2. This is used to support a charge purchase transaction that takes place

somewhere other than the front office.
3. It is usually a small form used to document a disbursement (payment).

13
4. Used to support an account allowance
5. Used to support cash flow out of the hotel, either directly to or on behalf of the
guest.
6. It is used to record cash or bank receipt. It represents receipt of cash in hand.

b.Cash receipt d. Allowance
7. The transactions in which property is transferred from seller to buyer for

money or credit as in car sales or from service provider to clients or guest as
in hotels, spas, and resorts
a.Sales c. Receipts
b.Purchases d. Payments
8. The transactions that are required by a business in order to obtain the goods
or services needed to accomplish the goals of the organization
9. A written acknowledgement of having received or taken into ones possession a

specified amount of goods or money.
10. The transactions that refer to a business receiving money for a good or service
11. The account or account name can either be the type of account as in the
example above or it can refer to the account holder's name which could be the
name of the hotel’s guest.
b. debit d. credit
12. A unique code composed of numbers, letters, or other characters, and is

assigned to the account to make it easier to be entered and accessed to in a
database.
14
13. An entry recording an amount owed, listed on the left-hand side or column of
an account
b. debit d. credit
14. An entry recording a sum received, listed on the right-hand side or column of
an account
15. The difference between the sum of debit entries and the sum of credit entries
entered into an account during a financial period.
16
NegOr_Q3_FOSModule3_v2
Assessment
What’s I Can Do
1. a 7. a 13. b.
1. 7 4. 6 7. 3 2. b 8. b 14. d
2. 1 5. 8 8. 4 3. c 9. c. 15. b.
3. 5 6. 2 4. d 10. d.
5. a. 11. c.
6. c. 12. a
What’s In
What’s More
1. c 4. d
2. b 5. f
3. a 6. e
What’s New
1. Charge Voucher
2. Commission
Voucher
What I Know
3. Allowance
1. a 6. c 11. c
2. b 7. a 12. a Voucher
3. c 8. b 13. b 4. Cash Advance
4. d 9. c 14. d Voucher
5. a 10. d 15. b 5. Cash Receipt
Voucher
Answer Key
References
Website
Photos | CANVA. (n.d.). Retrieved January 20, 2022, from https://www.canva.com/photos/
Book
Roldan, A. S. (2014). Introduction to Hotel & Front Office Operations. Skills Development
and Management Services, Inc.
For inquiries or feedback, please write or call:
Department of Education – Schools Division of Negros Oriental

Kagawasan, Avenue, Daro, Dumaguete City, Negros Oriental
Tel #: (035) 225 2376 / 541 1117

Email Address: negros.oriental@deped.gov.ph
Website: lrmds.depednodis.net
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9

TLE – HE – FRONT OFFICE

Borrowed materials (i.e., songs, stories, poems, pictures, photos, brand

Published by the Department of Education

Development Team of the Module

Printed in the Philippines by ________________________

Department of Education –Region VII Schools Division of Negros Oriental

Office Address: Kagawasan, Ave., Daro, Dumaguete City, Negros Oriental

This Self-Learning Module (SLM) is prepared so that you, our

After going through this module, you are expected to:

1. Discuss the types of hotel financial transactions.

2. Familiarize the processes involve in a financial transaction.

3. Appreciate the processes of accounting cycle.

1. This is issued to a salesperson and serves as a record of specific sales.

In hotel businesses, accounting means managing expenses and revenue. It

Notes to the Teacher

1. Cash Advance/ Deposit Receipt

Financial transactions processing is more than merely the capturing of

Types of Financial Transactions

Types of Financial Transactions

The accounting section of a business manages the financial transactions of

The front office accounting staff identifies, records, measures, classifies,

The objectives of accounting system are, among others, to:

1. accurately handle transactions between the guests and the hotel

The accounting cycle is a collective process of identifying, analysing, and

The accounting cycle follows the following steps:

The Steps of the Accounting Cycle

To better understand the steps discussed above, let us take a look at an

The example shows the account is for the electricity expense of an

Account number—A unique code composed of numbers, letters, or other

Details—the information about the entry

Reference number—A unique identifier assigned to any financial transaction

Debit—An item on the left-hand side or column of an account that records an

The general ledger is the main ledger used in a business financial

Guest folio—is assigned to charge for individual guests

Master folio—is assigned charge for group/organization

Non-guest folio—is assigned for non-resident guest

A folio is a record of all the transactions that have occurred in a single

Vouchers and Types

A transaction's vouchers are detailed documentary evidences. It moves the

Some of the typical vouchers used in hotels are:

Cash Receipt Voucher—is used to record cash or bank receipt. It represents

Commission Voucher—A commission voucher is a record of individual sales that

Allowance Voucher—is used to support an account allowance

Directions: Write at least a two-paragraph essay about your learning on this

I have learned that

Organization Strong and Organized Some No

Understanding Writing shows Writing shows a Writing shows Writing shows

Mechanics Few (if any) Few errors Several errors Numerous

TOTAL POINTS: /40

______1. Creating Financial Statements

______2. Identifying transactions

______3. Analyzing Worksheet Entries

______4. Adjusting Worksheet Entries

______5. Closing the Books

______6. Recording of transactions

______8. Unadjusted Trial Balance

1. This is issued to a salesperson and serves as a record of specific sales.

2. This is used to support a charge purchase transaction that takes place

3. It is usually a small form used to document a disbursement (payment).

6. It is used to record cash or bank receipt. It represents receipt of cash in hand.

7. The transactions in which property is transferred from seller to buyer for

9. A written acknowledgement of having received or taken into ones possession a

12. A unique code composed of numbers, letters, or other characters, and is