Cloud computing is a new technology in computer field which provides various resources over the Internet. It serves different types of the resources in virtualized form. Resource allocation and better utilization of the virtualized resources can be done by using scheduling. This paper analyses various types of scheduling algorithms for resource allocation in cloud computing. We propose a new algorithm to allocate resources in efficient manner. The developed resource allocation algorithm is based on different parameters like number of processor requests, capacity requests etc. Our proposal algorithm can be used for a better resource allocation of jobs in the cloud environment. © 2014 IEEE.