The drawer of a trade bill passes relevant entries with regard to the transaction involved in it. But, in case of an accommodation bill, he passes an entry in addition to the usual entries. The additional entry so passed is with respect to

Question

Quizplus · Accepted Answer

In the case of an accommodation bill, the additional entry made by the drawer involves remitting or receiving the amount, as these bills are drawn without any underlying transaction between the parties, purely for financial accommodation purposes.

The Drawer of a Trade Bill Passes Relevant Entries with Regard