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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
Accountingmedium
Aand no additional entry is passed except for sending the share of proceeds to the drawee. On payment of the bill on due date
Bno additional entry is passed in the books of the drawer. If the bill is sent to the bank for collection,
is the correct answer.
D. Thus,
Correct Answer: C. is the correct answer.
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