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Question
Bill of exchange
X draws a bill on Y for Rs. 2,50,000 on 1.1.2018 for 3 months after sight, date of acceptance is 6.1.2018. Maturity date of the bill will be _______.
Bill of exchange
X draws a bill on Y for Rs. 2,50,000 on 1.1.2018 for 3 months after sight, date of acceptance is 6.1.2018. Maturity date of the bill will be _______.
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Solution
The correct option is D 9.4.2018
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 3 months of acceptance i.e.6th April 2018 and adding three days grace which makes the date of maturity to be 9th April, 2018.
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 3 months of acceptance i.e.6th April 2018 and adding three days grace which makes the date of maturity to be 9th April, 2018.
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