Multiple choice

When accomodation bills are discounted the proceeds

  1. remain with the holder always

  2. may be shared by drawer and drawee

  3. may be shared by drawer, drawee and banker

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

 The accomodation bills are drawn for financial assistance without any consideration. So, the amount received from discounting of bill could be shared by drawer and drawee in a proportion as decided.

Keep practicing — related questions