How exactly would you define an encumbrance Tell us all that

.How exactly would you define an \"encumbrance?\" Tell us all that you can find out about this account. please give Reference

Solution

Encumbrance means charge created on any asset by way of loan, mortgage, liability etc..

An encumbrance can take several forms: mortgages, claims by other parties, courtjudgments, pending legal action, unpaid taxes, restrictive deed or loan covenants, easement rights of the neighbors, or zoning ordinances,

A contingent liability, contract, purchase order, payrollcommitment, tax payable, or legal penalty that is chargeable to an account.

Example
Every purchase order is entered as an encumbrance on company funds, thereby reserving the use of those funds for a specific purpose.
For reference I have used my book of Chartres accountancy final and some other referance of net..

So u can refer account book of CA Final