Q.8. You are the general manager of a Hotel. It is the hotel's policy that budget is prepared, using a six month time horizon. You are about to prepare the budget for July to December 2019, and have collected the following information: (i) The hotel has 90 bedrooms, each of which can accommodate one or two guests; (ii) During the months of July, August and December (high season), standard room rates will be Rs. 110 per night; (iii) During the months of September, October and November (low season), standard room rates will be Rs. 95 per night; (iv) The rates above apply to each room, regardless of whether there are one or two guests; (v) Average room occupancy per night at standard rates is expected to be: High season " Low season 80% 50%; (vi) The Company is registered with number of internet-based hotel providers like Trip2enjoy.com. It is expected that, subject to capacity, an average of 20 rooms per night can be sold through these facilities. These sales will be in addition to the occupancy levels noted in point (v) above. The internet based provider pays 40% of the standard rate for all bookings; (vii) It is forecasted that the average additional spending by guests will be Rs. 40 per room per night, and that the gross margin earned on this additional spending will be 35%; (viii) Variable costs are estimated to be Rs. 17 per room night; (ix) Fixed costs are estimated to be Rs. 40,000 per month; (x) When occupancy is above 90%, additional staff costs of Rs. 150 per night are forecasted. Required: For the six month period upto 31st December 2019, prepare Budgeted Profit and Loss 15 Account for hotel.