Append below are the main differences/distinction between:
|
Trade Bill |
Accomodation Bill |
|
Arises from an indebtedness arising from the purchase of goods or taking of a loan |
Is drawn and accepted only for providing funds to one of the parties or both the parties of the bill |
|
On discounting a trade bill, full amount is retained by the drawer |
Shared in an agreed ratio between the drawer and drawee |
|
Consideration is present in the trade bill |
No consideration is present |
|
Acts as evidence of indebtedness |
Acts as a source of finance |
|
In order to recover the debts, the drawer can initiate legal action |
Legal remedy for the recovery of amount is not available for immediate parties. |