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Question
Bill of exchange
On 1.1.2019, X draws a bill on Y for Rs. 20,000 for 3 months, maturity date of the bill will be ______.
Bill of exchange
On 1.1.2019, X draws a bill on Y for Rs. 20,000 for 3 months, maturity date of the bill will be ______.
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Solution
The correct option is A 3.4.2019
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. Therefore, in this case, the maturity is after it becomes payable i.e. three months later (31st March 2019) and adding three days grace which makes the date of maturity to be 3rd April, 2019 (3.4.2019). When period of bill is stated in months, calculation will be in months ignoring the days in months.
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. Therefore, in this case, the maturity is after it becomes payable i.e. three months later (31st March 2019) and adding three days grace which makes the date of maturity to be 3rd April, 2019 (3.4.2019). When period of bill is stated in months, calculation will be in months ignoring the days in months.
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