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Accounting forDisbursement

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General Purpose

The government is set up mainly to renservice at lowest possible cost to itsconstituents.

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As a control mechanism of government accountingsystem, obligation accounting provides the ceiling omaximum extent by which an agency can incur obligor commit the resources of the government in the

performance of its functions. With obligation accouan agency can operates only within the amount actureleased to it by the D!, which is within or coverethe amount approved appropriation.

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Cash Disbursement Ceilin

Accounting The cash disbursement ceiling accounting is another

control mechanism of government accounting systemThe cash operations of the government under the cadisbursement ceiling accounting are limited within t

boundaries of the appropriations release to governmagencies in the form of allotments, and any additionamount granted by the D! to li"uidate or pay exis

valid obligation.