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What Is “accommodation Bill”? |
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Answer» ACCOMMODATION bill is the “bill of exchange” by the third PARTY which is also known as an “Accommodation party” or “Accommodation endorser” who acts as a guarantor. This KIND of bill is not a genuine trade bill and it is drawn to accommodate a known party. After ACTUAL sale of goods, when a bill is drawn by a seller and accepted by another PERSON claim to be buyer is accommodation bill. Accommodation bill is the “bill of exchange” by the third party which is also known as an “Accommodation party” or “Accommodation endorser” who acts as a guarantor. This kind of bill is not a genuine trade bill and it is drawn to accommodate a known party. After actual sale of goods, when a bill is drawn by a seller and accepted by another person claim to be buyer is accommodation bill. |
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