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Question
Bill of exchange
On 15.8.2018, X draws a bill on Y for 3 months for Rs. 20,000. 18th Nov. was a sudden holiday, maturity date of the bill will be _______.
Bill of exchange
On 15.8.2018, X draws a bill on Y for 3 months for Rs. 20,000. 18th Nov. was a sudden holiday, maturity date of the bill will be _______.
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Solution
The correct option is D 19th Nov.
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 (15th Nov 2019) and adding three days grace which makes the date of maturity to be 18th November, 2019 (18.11.2019). But as there is a sudden public holiday on 18th Nov, the date of maturity shifts to the next day i.e. 19th Nov 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 (15th Nov 2019) and adding three days grace which makes the date of maturity to be 18th November, 2019 (18.11.2019). But as there is a sudden public holiday on 18th Nov, the date of maturity shifts to the next day i.e. 19th Nov 2019.
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