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21 October, 2021

Accomodation bill & Trade bill

         Trade Bill                                                    Accommodation Bill

1

Trade bills are drawn for trade purposes.

1

Accommodation bills are drawn and accepted for financial assistance

2

 

3

These are drawn against proper

consideration.

These bills are proof of debt

2

 

3

These are drawn in absence of any

consideration

These are not a proof of debt

4

If discounted full sum retains with holder of the bill

4

If discounted the amount may be divided between drawer and acceptor in pre-

 

5

 

For obtaining the debt from drawee, drawer

 

5

determined ratio.

Legal action cannot be resorted for recovery

 

can resort to legal action.

 

of amount against these bills by the

immediate parties.