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Question
Bill of exchange
On 16.6.2019, X draws a bill on Y for Rs. 25,000 for 30 days. 19th July is a public holiday, maturity date of the bill will be ______.
Bill of exchange
On 16.6.2019, X draws a bill on Y for Rs. 25,000 for 30 days. 19th July is a public holiday, maturity date of the bill will be ______.
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Solution
The correct option is B 18th July
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 (16th July 2019) and adding three days grace which makes the date of maturity to be 19th July, 2019 (19.7.2019). But on 19th is public holiday, so the date will shift to immediately preceding day i.e. 18th July, 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 (16th July 2019) and adding three days grace which makes the date of maturity to be 19th July, 2019 (19.7.2019). But on 19th is public holiday, so the date will shift to immediately preceding day i.e. 18th July, 2019.
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