accommodation bill of exchange
Usually a bill of exchange is drawn with attention; the drawer makes an order to the drawer to make payment for the goods supplied to him. Often a bill exchange can be accepted without consideration just to help a friend for short term finance or for joint profit.
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