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What is an Accommodation Bill? |
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Answer» A bill of exchange and Promissory note may be used for raising funds temporarily. Such a bill is called an ‘accommodation bill’ as it is accepted by the drawee to accommodate the drawer. These are drawn and accepted without consideration with a view to provide funds to one or more parties. There is no trade or debtor-creditor relationship between parties. It is also known as ‘kite bill’ or ‘Wind bill’. |
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