What does allotment mean in accounting?

An account is an asset or a liability that is assigned a specific purpose. The account balances represent the value of the assets or liabilities. accounts are used to track a company’s financial transactions over a given period of time. Examples of accounts include a cash account, a bank account, an inventory account, or a fixed asset account.

What is the meaning of the word allotment in auditor?

The term ‘’ allotment ’ generally refers to an amount of money allotted to a person for a specific purpose. It is mainly used in the context of finance and business. A company employee, for example, is allotted a certain salary for his work. The salary is allotted to that employee as per the organization’s budget. In the context of accounting, the term ‘’allotment’’ is used to describe the approval of an

What is allotment means in accounting?

In standard accounting procedures, an allotment is a budget for a specific item. This budget is created by allocating a fixed amount of money to the item in the month-end. This budget is created before the month end so that when the month ends, the actual expenses are deducted from the budget and the remaining amount is the profit for the month.

What is the meaning of the word allotment in accounting?

An allotment is simply an amount of money that is assigned to a particular expense or cost. When you take a budget plan in order to manage your finances, you need to list all the needs you have, making sure that you have allocated enough funds to cover each item. In accounting, an allotment is the same thing. It is an amount of money that is assigned to a particular cost and expense.

What does the word allotment mean in accounting?

Allotment is the portion of the budget that is used to pay for a specific expense. When you pay for something with a credit card, the money you use is drawn from your available credit line or the money in your account. While a credit card company doesn’t care how you use the money, an accountant does. If you use the money to pay for your gym membership, the accountant will want to make sure the money is coded correctly so that they have a record of the purpose