By Raymond S. Schmidgall, David K. Hayes, Jack D. Ninemeier
Publish yr note: First released October second 2002
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A whole, useful advisor to coping with eating place enterprise finances
One of the keys to a profitable eating place enterprise is robust monetary administration. This publication equips readers with the instruments had to deal with the funds of foodservice institutions successfully. Written by means of specialist authors with broad adventure within the box, this available source is full of worthwhile info that may be utilized to daily operations. It deals concise, down-to-earth assurance of simple accounting topics-including pricing, budgeting, price regulate, and money flow-as good as extra really good details, comparable to tips on how to identify menu costs.
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Additional resources for Restaurant Financial Basics (1st Edition)
Sample text
This account is used to record the purchase of buildings used by the restaurant. ■ Equipment. This account is used to record the purchase of equipment. ■ Furniture. This account is used to record the purchase of furniture. ■ ■ ■ China, glassware, silver, and linen. This account is used to record the purchase of china, glassware, silver, and linen. ) Accumulated depreciation. This account is used for recording depreciation over the useful life of an asset such as equipment. Deposits. , should be recorded in this account.
An account has a debit balance if the sum of the debits for the account exceeds the sum of the credits for the same account. Conversely, an account has a credit balance if the sum of the credits for the account exceeds the sum of the debits for the same account. In the following illustration for Luis’s, the cash account has a debit balance of $1,755. The two debit entries total $5,015, and the three credit entries total $3,260. Since the debits exceed the credits, the balance of $1,755 is called a debit balance.
These basics should be incorporated into the restaurant’s procedures for collecting, assembling, reporting, and using financial information. TYPES OF BUSINESS TRANSACTIONS BUSINESS TRANSACTION The act of exchanging something (such as money in the form of cash, check, credit card, or promise of future payment) to purchase food products, employee labor, or resources needed by the restaurant during the conduct of business. Every day, innumerable business transactions occur in restaurants. There is an exchange of cash to purchase food from suppliers, and guests use credit cards or cash to pay for their meals.