• A folio is a statement of all transaction that has taken place in a
• It is a written record of guest account and is created at the time of
starting book of accounting the name of a guest.
• The front office cashiers records all the transactions between the
guest and the hotel on the folio.
• The folio is opened with zero initial balance.
• The balance in the folio then increases or decreases depending
upon the transactions.
• At the time of check-out, the folio balance must return to zero on
settlement of payment ie it begins with a ZERO balance and ends
with the SAME.
• In between, the balance may be debit or credit depending upon
the type of transactions.
4. Guest Folio :
Assigned to charge for individual guests.
It is created for each guest as soon as
the first financial transaction take place
between the hotel and the guest.
generally a folio is created at the time of
registration or sometimes at the time of
reservation it is open to post in the
credit side the advance payment given
by the guest as a token to guarantee his
6. Master Folio:
Assigned charge for more than one person,
usually for Group Accounts./organization i.e.
it contains account for more than one guest
more common for the entire group master
folio is prepared. In small hotels a master
folio contains the financial details of all the
guest staying in the hotel and by seeing
through it one can easily find the net credit
or debit balance for the day.
8. Split Folios –
Accounts assigned to a guest on
his/her request to split his/her charges
and payments between two
personal folios – one to record
expenses to be paid by the sponsoring
business company and the other to
record personal expenses to be paid by
9. Non-guest Folio:
Assigned for non-resident guest. It is also
called as city folio, it contain the financial
transactions between a hotel and its
nonresident guest. A hotel may offer credit
facility to local businessman; corporate and
even city folio is created for that nonresident s
guest who avails the club facilities, health
centre, sport centre etc facilities offered by
11. Employee Folio:
Assigned for hotel employee, his
folio contains the credit transactions
between hotel and its employees.
The folio is created and maintain for
employees to whom the hotel has
permitted credit facilities, and the
amount is later collected from the
employees or deducted from their
salaries as per the hotels policy.
13. Postings in Folios: The process of recording the
entries on the folio is called ‗Posting‘ of
transactions. There are two basic types of
Credit: They reduce the guest‘s outstanding
balance. These entries include complete or partial
payment, or adjustments against tokens.
Debit: They increase the outstanding balance in
the guest account. Debit entries include charges
under restaurant, room-service, health
center/spa, laundry, telephone, and