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Barter Example 2 (Hotel)

The Nicestay Hotel purchases the following goods and services which they obtain on 100% barter.

The Contra Cash was generated from the barter sale of unsold room occupancy.

Expenditure Price (Contra Cash)
Carpet 10,000.00
Laundry 5,000.00
Advertising 5,000.00
Promotional Pens 3,000.00
Total Contra Cash Used 23,000.00

The total cost of these transactions payable in cash by the Hotel (5% transaction fee on barter amounts) is £1,150.00

This gives immediate cash saving of £21,850.00.

The Nicestay Hotel's barter account now shows a debit balance of -£23,000 Contra Cash (subject to overdraft approval). The Nicestay Hotel now offers rooms/meals/confernece facilities etc. available within the Barterbank Store and each sales transaction will reduce this balance until it reaches zero.

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