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Question
A negotiable instrument dated 31st August, 2019, is made payable 3 months after date. The instrument is at maturity on ______.
A negotiable instrument dated 31st August, 2019, is made payable 3 months after date. The instrument is at maturity on ______.
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Solution
The correct option is B 3rd December, 2019
Maturity means the date on which a bill of exchange falls due for payment. The date of maturity is to be calculated in respect of bills which are payable after a specified time. In arriving at the maturity date three days, known as days of grace, must be added to the date on which the period of credit expires instrument is payable. Here, the cheque is payable after three mgonths and addin the three days grace which makes the maturity date to be 31st August 2019 + 3 months + 3 days i.e. 3rd December, 2019.
Maturity means the date on which a bill of exchange falls due for payment. The date of maturity is to be calculated in respect of bills which are payable after a specified time. In arriving at the maturity date three days, known as days of grace, must be added to the date on which the period of credit expires instrument is payable. Here, the cheque is payable after three mgonths and addin the three days grace which makes the maturity date to be 31st August 2019 + 3 months + 3 days i.e. 3rd December, 2019.
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