Sometimes when there is no debtor-creditor relationship, traders having credit and prestigein the market, draw and accept bill in order to make provision for the short term financialrequirements of one another. One party (trader) draws a bill and the other party (trader)accepts it. This bill is discounted with a bank or a shroff and traders can get the requiredmoney for a short period. Before the maturity date, the person who has discounted theBill sends the money to the person who has accepted the bill and who pays the amountto the bank or the shroff on the maturity date. In this way, traders can take care of theirshort term monetary crisis. Sometimes, the money received on discounting the bill isdistributed in a definite proportion between the trader, who discounts the bill and thetrader who accepts the bill. The discount expense is shared in the proportion of amountdistributed. Before the maturity date, the person who has discounted the bill (drawer)sends his share of money to the person who has accepted the bill and who pays theentire amount to the bank or the shroff on the maturity date. Sometimes, the trackersdraws and accepts the bill against each other and they use the money by discountingthis bill in a bankThe main objective of this type of bill is not settlement of debts and dues, buttaking care of the convenience of one another or accommodation of one another, and sothese bills are known as accommodation bills.