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Question
Bill of exchange
On 1.8.2020, X draws a bill on Y for 30 days after sight. The date of acceptance is 8.8.2020. The maturity date of the bill will be ______.
Bill of exchange
On 1.8.2020, X draws a bill on Y for 30 days after sight. The date of acceptance is 8.8.2020. The maturity date of the bill will be ______.
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Solution
The correct option is B 10.9.2020
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. In case of bill after sight, the date of acceptance is the date from which maturity is calculated. Therefore, in this case, the maturity is after 30 days of acceptance i.e. 7th Sep 2020 and adding three days grace which makes the date of maturity to be 10th Sep 2020.
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. In case of bill after sight, the date of acceptance is the date from which maturity is calculated. Therefore, in this case, the maturity is after 30 days of acceptance i.e. 7th Sep 2020 and adding three days grace which makes the date of maturity to be 10th Sep 2020.
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