Payment made partially or in advance towards a larger amount due.

Explanation:

The term "on account" refers to partial payments made towards a future total amount due, often used in contexts of business transactions and billing where full payment is not made upfront but rather in segments.

Examples in Account:

• Making an aconto payment for a large order to secure the transaction.
• Accounting entries reflecting aconto payments as liabilities until the full amount is settled.
• Discussing payment terms with suppliers that include aconto arrangements.

FAQ:

• Why use aconto payments? Aconto payments help manage cash flow by allowing larger sums to be paid over time, reducing the immediate financial burden on the payer.
• Are aconto payments refundable? Whether aconto payments are refundable depends on the terms of the agreement. Typically, they are not refundable if they represent a commitment to a service or purchase.
• How are aconto payments recorded in accounting? In accounting, aconto payments are recorded as prepaid expenses or liabilities until the full transaction is completed.