How to do the accounting entries of hospitality in hotel business?

In the hotel industry, business entertainment expenses often occur, and this part of entertainment expenses has no profit inflow and cannot be recognized as income. How to make accounting entries for hospitality in hotel business?

Accounting entries of hospitality in hotel industry

Relevant accounting entries are as follows:

Borrow: management expenses-business entertainment expenses

Credit: Cash on hand

What does business entertainment include?

Business entertainment expenses are the entertainment expenses paid by the enterprise for the reasonable needs of business operation, including the expenses incurred by the business that often happens to contact the business or promote sales and handle social relations. As a reasonable expense for the production and operation of an enterprise, business entertainment expenses can be truthfully charged according to the accounting system, and can be deducted before income tax in a certain proportion according to the provisions of the tax law, and the part exceeding the standard cannot be deducted.

According to Article 43 of the Regulations for the Implementation of the Enterprise Income Tax Law of People's Republic of China (PRC), the business entertainment expenses incurred by an enterprise related to production and business activities shall be deducted according to 60% of the amount incurred, but the maximum amount shall not exceed 5‰ of the sales (business) income of that year.

Accounting entry of hotel cost

1, personnel salary:

Debit: sales expenses

Management expenses, etc.

Loan: wages payable to employees.

2. Sales of food, beverages and other commodities:

Debit: cash on hand/bank deposit.

Loan: income from main business

Taxes payable-VAT payable (output tax)

Carry-over cost:

Debit: main business cost

Loans: Goods in stock

3. Spa income:

Debit: accounts receivable/cash on hand/bank deposits

Loan: main business income -spa

4, room income:

Debit: accounts receivable/cash on hand/bank deposits

Loan: main business income-guest room

5. Room deposit:

Debit: accounts receivable/cash on hand/bank deposits

Loan: other payables-house payment