alleryAccommodation bills are drawn primarily to:
ASettle a trade transaction
BBuy a new fixed asset
CProvide financial accommodation
DPay tax dues to government
Answer & Solution
Correct answer: C. Provide financial accommodation
1. Accommodation bills are drawn and accepted without any underlying trade.
2. The purpose is to raise short-term finance from the bank.
3. The parties share the proceeds and split discount cost.
_Source: ICAI BoS Foundation Paper 1, Ch 6 "Bills of Exchange", §6 accommodation_
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