2023 DIET THERAPY, HOSPITALITY ACCOUNTINGAND CONTROL

1. (a) State six reasons for loss of appetite in patients. (6 marks)
   • Illness or infection
   • Medication side effects
   • Stress or anxiety
   • Depression
   • Chronic diseases
   • Nutritional deficiencies

(b) Highlight six benefits of physical activity to the body. (6 marks)

• Improved cardiovascular health
• Enhanced muscular strength
• Better weight management
• Increased flexibility and balance
• Improved mental health
• Boosted immune system

(c) Describe four ways in which physical examination can be used to indicate the nutritional status of an individual. (8 marks)

• Assessing body mass index (BMI)
• Checking skin, hair, and nail condition
• Observing muscle mass and fat distribution
• Evaluating signs of nutrient deficiencies like pallor or edema

2. (a) (i) identify two causes of peptic ulcers. (2 marks)

• Helicobacter pylori infection
• Long-term use of NSAIDs (nonsteroidal anti-inflammatory drugs)

      (ii) Suggest six diet considerations for patients suffering from peptic ulcers. (6 marks)

• Avoid spicy foods
• Limit alcohol consumption
• Avoid caffeinated beverages
• Eat smaller, more frequent meals
• Avoid acidic foods
• Include foods rich in fiber

(b) Enumerate six reasons for modifying diets. (6 marks)

• Health conditions
• Weight management
• Allergies or intolerances
• Nutritional deficiencies
• Cultural or religious practices
• Personal preferences

(c) Discuss three benefits of high fiber diets. (6 marks)

• Improved digestive health
• Better blood sugar control
• Reduced risk of heart disease

3 (a) The following information was extracted from the books of account of Botta Hotel as at 31st December 2020: Ksh

• Accounts payable: 46,000
• Accounts receivable: 56,000
• Inventory: 58,000
• Capital (January 2020): 378,000
• Equipment: 388,000
• Cash in hand: 184,000
• Bank loan: 150,000
• Net profit for the year: 112,000

Prepare a statement of financial position as at 31st December 2020. (8 marks)

Statement of Financial Position as at 31st December 2020

Assets

Non-Current Assets:

Equipment: 388,000

Current Assets:

Accounts receivable: 56,000

Inventory: 58,000

Cash in hand: 184,000

Total Current Assets: 298,000

Total Assets: 686,000

Equity and Liabilities

Equity:

Capital (January 2020): 378,000

Net profit: 112,000

Total Equity: 490,000

Non-Current Liabilities:

Bank loan: 150,000

Current Liabilities:

Accounts payable: 46,000

Total Liabilities: 196,000

Total Equity and Liabilities: 686,000

(b) Explain each of the following terms:

(i) Invoice. (2 marks) An invoice is a document issued by a seller to a buyer listing the goods or services provided and detailing the amounts due for payment.

(ii) Paying-in slip. (2 marks) A paying-in slip is a form used by bank customers to deposit funds into their accounts, indicating the amount of money being deposited.

(iii) Credit note. (2 marks) A credit note is a document issued by a seller to a buyer, reducing the amount the buyer owes, typically due to returned goods or overcharges.

(c) On 31st July 2021, the cash book of Khan Restaurant showed a debit bank balance of Ksh. 498,000. The following information was obtained from the bank statement for the month of July 2021: Ksh

• Bank wages: 23,000
• Standing order payment: 115,000
• Direct deposit: 69,200
• Dishonored cheques: 46,000

Prepare an adjusted cash book. (6 marks)

Adjusted Cash Book

Debit Bank Balance: 498,000

Less:

Bank wages: 23,000

Standing order payment: 115,000

Dishonored cheques: 46,000

Total Deductions: 184,000

Add:

Direct deposit: 69,200

Adjusted Cash Balance: 383,200

4 (a) Explain three uses of a trial balance in an organization. (6 marks)

• Detecting accounting errors
• Preparing financial statements
• Monitoring account balances

(b) The following errors were revealed in the books of account of Amod Restaurant during the month of June 2021:

• Purchases day book had been overcast by Ksh 24,600.
• Cash sale of Ksh 18,000 had been debited on both accounts affected.
• Discounts allowed of Ksh 2,000 had been recorded in the discounts received account.

Prepare a general journal correcting the errors. (8 marks)

General Journal

Dr: Purchases 24,600

Cr: Purchases Day Book 24,600

Dr: Cash 18,000

Cr: Sales 18,000

Dr: Discounts Received 2,000

Cr: Discounts Allowed 2,000

(c) Yego and Zena are partners in business with capital contributions of Ksh 150,000 and Ksh 100,000 respectively. Their partnership agreement provides for:

• Profits and losses to be shared equally.
• Interest on capital to be allowed at 12% per annum.
• Zena to receive a monthly salary of Ksh 6,000.
• During the year 2020, the firm realized a net profit of Ksh 138,000.

Prepare an appropriation account for the year ended 31st December 2020. (6 marks)

Appropriation Account for the Year Ended 31st December 2020

Net Profit: 138,000

Add: Interest on Capital:

Yego: 150,000 * 12% = 18,000

Zena: 100,000 * 12% = 12,000

Total Interest: 30,000

Less: Zena’s Salary: 6,000 * 12 = 72,000

Remaining Profit: 36,000

Share of Profit:

Yego: 18,000

Zena: 18,000

Total Distribution: 138,000

5

 (a) Identify four components of a sales budget. (4 marks)

• Sales volume
• Sales revenue
• Sales expenses
• Sales forecast

(b) Highlight five objectives of budgetary control. (5 marks)

• Cost control
• Performance measurement
• Resource allocation
• Financial planning
• Identifying variances

(c) State five advantages of forecasting in food production control. (5 marks)

• Reduced waste
• Improved inventory management
• Enhanced customer satisfaction
• Better cost control
• Efficient resource utilization

(d) The following information was extracted from the books of Rangi Rangi Restaurant for the month of June 2020:

• Purchases: Ksh 2,350
• Sales: Ksh 4,396
• Stock on 1st June: Ksh 256
• Stock on 31st June: Ksh 230
• Purchase returns: Ksh 26

Calculate gross profit. (3 marks)

Opening Stock: 256

Add: Purchases: 2,350

Less: Purchase Returns: 26

Add: Cost of Goods Available for Sale: 2,580

Less: Closing Stock: 230

Cost of Goods Sold: 2,350

Sales: 4,396

Less: Cost of Goods Sold: 2,350

Gross Profit: 2,046

(ii) Express gross profit above as a percentage of sales. (3 marks)

Gross Profit Percentage = (Gross Profit / Sales) * 100

= (2,046 / 4,396) * 100

≈ 46.54%

6. (a) Highlight five factors that determine stock levels in catering accommodation. (5 marks)
   • Demand variability
   • Storage capacity
   • Supplier reliability
   • Lead time
   • Budget constraints

 (b) Ringo Motel provided services worth Ksh 9,500 in the month of May 2020. Opening stock was valued at Ksh 3,500 while closing stock valued at Ksh 1,150. Calculate the rate of stock turnover for the restaurant. (5 marks)

Stock Turnover Rate Calculation:

• Cost of Goods Sold (COGS): Opening Stock + Purchases – Closing Stock = 3,500 + 9,500 – 1,150 = 11,850
• Average Stock: (Opening Stock + Closing Stock) / 2 = (3,500 + 1,150) / 2 = 2,325
• Stock Turnover Rate: COGS / Average Stock = 11,850 / 2,325 ≈ 5.1 times

(c) Giving an example in each case, distinguish between operating and fixed budgets. (6 marks)

• Operating Budget: A budget that outlines the expected income and expenses for day-to-day operations over a specific period. Example: Monthly food and beverage budget.
• Fixed Budget: A budget that remains unchanged irrespective of the level of activity. Example: Annual rent budget for the restaurant premises.

(d) State four objectives of production planning in catering and accommodation. (4 marks)

• Ensuring timely delivery of services
• Maintaining quality standards
• Optimizing resource utilization
• Reducing operational costs