Rajnish Optimist 145 Questions 243 Answers 225 Best Answers 1k Points View Profile Rajnish Asked: July 19, 20202020-07-19T19:53:25+05:30 2020-07-19T19:53:25+05:30In: UPSC CSE Difference between trade bill and accommodation bill. Difference between trade bill and accommodation bill. Define trade and accommodation bills separately. economicsupsc Share Facebook 1 Answer Recent Rathore 43 Questions 5 Answers 5 Best Answers 100 Points View Profile Best Answer Rathore 2020-07-19T20:21:43+05:30Added an answer on July 19, 2020 at 8:21 pm Trade Bill Accommodation Bill Those bills which we draw and accept for same consideration are trade bills. Those bills which we draw and accept without any consideration. These bills are enforceable by law. Trade bills are not legally enforceable. Trade bills reflect debt acknowledgment. These bills do not reflect debt. When bill is dishonored the drawer can sue. If bill is dishonored drawer cannot sue. Loss is borne only by drawer, by way of discounting the bill. Loss by way of discounting the bill will be shared by drawer and drawee in the proportion of their sharing in the bill ‘s proceeds. Accommodation bill: These bills are drawn and accepted without consideration. Also, such bills are drawn in bill of exchange for the financial assistance of one or both of the parties. Mainly imaginary bill. Often misused for raising a loan. Bankers often don’t want to buy accommodation bills. Trade Bill: Real bill. Correctly used for financing trade. Drawer himself is a creditor as well as debtor. Bankers are much interested to buy such documents. By backing real transitions there is valuable consideration. 10 Reply Share Share Share on Facebook Share on Twitter Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer.Continue with FacebookContinue with Google Related Questions What is EPFO and EPF? Describe ‘Strategic Trade Authorisation’(STA).