A draws a bill on B for Rs. 500 payable to the order of A. B accepts the bill, but subsequently dishonours, it by non-payment. A sues B on the bill, B proves that it was accepted for value as to Rs. 400, and as an accommodation to the plaintiff as to the residue.
1
A can recover Rs. 500.
2
A can only recover Rs. 400.
3
either 1) or 2)
4
none of the above