Definition: To allocate an amount proportionately, commonly dividing income or expenses between buyer and seller according to their respective ownership periods.
Example
Using an agreed $10 daily rate, a 12-day share of an expense is $120.
Keep the distinction clear
Determine who is responsible for the closing day, whether the item is prepaid or in arrears, and which day-count convention applies before assigning debits and credits.
Related terms
Per Diem · Debit (Closing Statement) · Credit (Closing Statement)
Keep studying
Real Estate Prorations: Who Gets Debited and Credited?
References: California DRE: real estate glossary
Pronunciation (US): proh-RAYT (capitals show stress)
Pronunciation reference: Merriam-Webster
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