Accommodation Bills of Exchange
Accommodation bills of exchange are the bill of exchange drawn for facilitating or accommodating the parties on which bill was drawn. Accommodation bills of exchange were not drawn to get the amount. Accommodation bills of exchange accepted without consideration so there is no liability on acceptor to drawer and third party take the value so acceptor is payable to third party.
Insolvency of Acceptor in Bills of Exchange: Learning Objectives: How the matter is treated in accounting for bills of exchange when the drawee becomes insolvent? Insolvency of a person means that he is unable to pay his liabilities. This will mean that bill accepted
Accounting For Bills of Exchange: Learning Objectives: Define and explain bills of exchange. What are its advantages? How does a bill differ from a promissory note? How a bill of exchange functions? What are the accounting treatments of drawing, accepting, discounting, and paying a
Accommodation Bills of Exchange: Learning Objectives: Define and explain an accommodation bill of exchange. What is the difference between trade bill and an accommodation bill? Make journal entries in the books of drawer and acceptor when accommodation bills are used. Definition and Explanation of