How to Make Trail Balance

Trial balance is a statement of debit and credit balances extracted from the ledger, with a view to test the arithmetical accuracy of the books. One of the basic principles of double-entry is that for every debit there must be a corresponding credit. Therefore the...

How to Pass Journal Entries

In accounting system, each business transaction is first recorded in an accounting record called the journal. Since the transactions are initially recorded in a journal therefore it is also called book of original entry. The process in which one account is debited and...

Rules of Debit and Credit

In order to record the journal entries, one must know the rules of debit and credit. First of all we should know the meaning of debit and credit. In journalizing, debit simply means the act of recording entry on left side of an account whereas credit means recording...

Price Adjustment Strategies

Price adjustment strategies refer to all those strategies which are applied by an organization to take into consideration the differences among the customers and rapidly changing environment.  The important price adjustment strategies are: geographical pricing,...