Negotiable instruments act 1881
Querist : Anonymous
plzz give an example...:(
When a bill of exchange is drawn, accepted, or endorsed without consideration, it is called an “accommodation bill”.
.
Example : Ram is need of Rs.50,000/-. He asked his friend Mohan for borrowing the amount.
.
Mohan may not be in a position to lend but agrees that Ram may draw a bill on him, which he would accept.
.
If Ram's credit is good, he would get the bill discounted with his banker.
.
On the due date, Ram would pay Rs.50,000/- to Mohan, and such amount is deposited by Mohan with Ram's Bank against the discounted bill .
.
The person who signs, accept or endorses a bill without receiving any consideration is said to have lent his name to an ‘Accommodation Bill’ so here Mohan is Accommodating Party.
.
The person who so draws bills, in this case Ram is, “Accommodation Party”.
.
Querist : Anonymous
Click here to login now
Similar Resolved Queries
- House Property Reporting in ITR
- Refund Annexure-B
- TDS Claim year
- Liable to deduct tds and 44ADA
- Refund of 20%pre-deposit paid for stay application
- Rent lease agreement
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- TDS Challan Code
- SGST balance is there in credit ledger how to adjust for cgst
- Internship/Academic shown in Salary Pay Slip of a Doctor
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
