CHAPTER ONE

1.1            INTRODUCTION OF THE STUDY

Many people think of accounting as a highly technical field, which can be understood only by professional accountants. Actually, nearly every pone practices accounting in one form or another on an almost daily basis. In  Quote, American Accounting Association (1999: p5) Define Accounting is the art of system of measuring the results of business activities, communicating and interpreting financial activities.

Whether one is preparing a household budget, balancing one’s check book, preparing one’s income tax  return or running general motors one is working with accounting concepts and accounting  information.

Another definition by Vickery, B.G. (1973: P15) principle s and practice of Book-keeping and Accounts. Accounting has often been called the language of business, as well as a language of communication in an organization, it is logical that a language should change to meet to changing needs of society. In accounting, the changes and improvements are continually being made. We live in an era of accountability. Although accounting has made it’s most dramatic progress in the field of business, the accounting function is vital to every unit of out society. An individual must account for his or her income, and must file income tax returns. Often an individual must supply personal accounting information in order to buy a car or home. To qualify for a college scholarship, to secure a credit card, o to obtain a bank loan. Large corporations are accountable to their stockholders, to governmental agencies and to the public. The federal government, the states, the cities, the school district, al must use accounting as a basis for controlling their resources and measuring their accomplishments. Accounting is equally essential to the successful operation of a business, a university, a fraternity, a social program, or city.

In every electric the voters must make decision at the ballot box on issues involving accounting concepts; therefore, some knowledge of accounting is needed by all citizens if they are to act intelligent in meeting the challenges of our society. The knowledge of accounting and the ability to use accounting information aid in making economic and political decision.

At this point, I will like to introduce the history of business hotels limited.

Benue hotels was built as a result of the completion of the Makurdi rail way/road Bridge opened on the twenty fourth (24th) May, 1932. It came into existence is the early seventy and was then known as a  great house. This guesthouse then used by top government officials, colonial   masters during state tours and officials visits. The bridge brought in a lot of visitors into Makurdi town, as the town was the first to have had such a long and attractive bridge. This also gave rise to accommodation demand in Benue State, hence the sprigging up of other hotels like the Makurdi Plaza Hotel, Bem Hotel, and also the government started the uncompleted 300-bed room international hotel (Sheraton Hotel).

The Makurdi guesthouse than turned to its present name Benue Hotels limited. 1986 when Nigeria is was divided up into nineteen states.

The Benue State Government owns 75% shares in Benue Hotels limited while the Nigerian hotels owns 24 shares. The Benue hotels limited is managed by the Nigerian Hotels; with their head quarters situated in Lagos. 

BENUE HOTELS LIMITED

ORGANIZATIONAL STRUCTURE

1.2     STATEMENT OF RESEARCH PROBLEMS

Accounting to Osuala (1982: 26) Problem definition is the most important part of a research and a statement of a problem verves elaborate upon the information implied in the title of the research.

One of the greatest challenges facing the Hotels industry today, is the increasing incidence of lack of proper accountability. It has in recent constituting serious problems to hotels in Nigeria, this lack of proper accountability have led to the failure and subsequently closure of a great number of hotels in Nigeria.

With the frequent cause of lack of proper accountability in the hotel industry today, one would began to ask questions. Thus the questions, which prompted the researcher’s inquisitive mind to carry out this study, are as follows:

i.        What are the contributions of accounting department to the   development of the hotel?

ii.       What are the procedures that are followed in carrying out accounting functions in hotels?

iii.      What role does accounting department play as part of internal control?

iv.      What are the problems facing accounting department

v.       Is accounting department effective?

1.3     OBJECTIVES OF THE STUDY

The study is undertaken to throw more light on accounting procedures and problems encountered in hotels.

The study is intended o take the researcher to the study and understanding the modern accounting theory and practice as well as examine the disparity and relationship between the work of an accountant in the hotel industry and other industry. The study is intended to investigate and bring out the relative importance of accounting in hotels examines the function of accounting department in hotels.

The study is also aim at analyzing the causes of problems encountered in carrying out accounting functions or activities in hotels and also recommend possible solutions.

1.4            SIGNIFICANCE OF THE STUDY

The study is of significance to hotels with accounting department or division so that through this research they can appreciate the relevance of the accounting department o management efficiency. This they can recognize it scope of operations and areas where there are problems and of course to make effort to rectify the problems. The research work can even be of more particular importance to the management of savannah suite limited Hotels limited. This can also serve as an information to the following groups of people:

-        Student

-        business community

-        Researcher

-        Investors

-        Managers

1.5            SCOPE OF THE STUDY

In studying the accounting in the hotel industry, emphasis was led on the accounting department or division of Savannah suite limited. The financial data collected and used in the course of this research work covers the period between 2000-2001.

1.6            LIMITATION OF THE STUDY

The study was carried out under a number of limitations; the time available was grossly in adequate to carry out the research in details the researcher had tried to concentrated\ on areas considered very important.

The researcher’s visit to the school library did not prove too useful since mo