Accounting · Bills of Exchange and Promissory Notes

Due Date, Maturity and Calculation of Dates for Bills of Exchange

Updated 1 October 2026 · Fact-checked

The due date (date of maturity) of a bill is the day the drawee must pay. Take the term from the date of drawing or acceptance as the bill states, count by months or exact days, then add 3 days of grace. If that day is a public holiday, payment falls due on the preceding business day.

Understand Due Date, Maturity and Calculation of Dates

A bill of exchange is not always payable at once. Many bills are payable after a period, such as 3 months after date. The nominal due date is the day the term ends. The legal due date, also called the date of maturity, is the nominal due date plus 3 days of grace.

Days of grace are extra days allowed by custom and law for the drawee to pay. They are added to every bill that is payable after a fixed period, after date or after sight. They are not added to a bill payable on demand, at sight or on presentation.

The term can start from two points. After date means the count starts from the date of the bill, the date it was drawn. After sight means the count starts from the date the drawee accepts it, that is, sees it. Read the wording of the question carefully, because this decides your starting day.

The term is given in months or in days. For months, you move to the same date in the later month, and you do not count each day. For days, you count exact days and exclude the starting day. Then you add grace days.

Holidays matter at the end. If the maturity day is a public holiday, the bill falls due on the preceding business day. The exception is an emergency holiday declared under the law, where the bill falls due on the next business day. At Foundation level, questions usually ask for the preceding business day when it is a public holiday such as Sunday.

Key rules to remember

Legal due date: Date of maturity = Nominal due date + 3 days of grace; Applies to bills payable after a fixed period, after date or after sight. No grace on bills payable on demand or at sight.
Term in months: Nominal due date = same day number in the month reached after counting the months from the starting date; If the month reached has no such day, use the last day of that month. Example: 3 months after 30 November gives 28 February, or 29 in a leap year.
Term in days: Nominal due date = starting date + number of days, excluding the starting day; Use the actual days in each month. From 10 January, 60 days is counted starting 11 January.
Starting date: After date: date of drawing. After sight: date of acceptance; Check the wording of the term in the question.
Holiday rule: If the maturity date is a public holiday, due date = preceding business day; This is the usual exam rule. If the day is an emergency holiday, the next business day applies.

How to solve Due Date, Maturity and Calculation of Dates questions

Follow the same order every time. It keeps you from losing marks on date slips.

1Check if the bill is payable on demand or at sight. If yes, no grace is added and the due date is the date of presentation.
2Identify the starting date: the date of the bill for 'after date', or the date of acceptance for 'after sight'.
3If the term is in months, move forward that many months keeping the same day number. Adjust to the month end if the day does not exist.
4If the term is in days, exclude the starting day and count the actual days of each month until you reach the nominal due date.
5Add 3 days of grace to get the date of maturity. Carry over into the next month if needed.
6Check if the resulting date is a public holiday or Sunday. If yes, move back to the preceding business day.
7Write the final due date clearly with day, month and year, and show the working in short lines.

Quickest way: Month-end counting with the days-left trick

When to use it: Use this when the term is in days and spans two or more months, or when grace days cross a month end.

For a term in days, find days left in the starting month: month length minus the starting day number.
Subtract those days from the term, then subtract each full month's days in turn until the remainder is less than the next month's length.
The remainder is the day number in that month. This is the nominal due date.
Add 3 to the day number. If it exceeds the month length, subtract the month length and move to the next month.
Memorise month lengths: 30 days for April, June, September and November, 28 or 29 for February, 31 for the rest.
Always do the holiday check last, using the calendar given in the question.

Common mistakes in Due Date, Maturity and Calculation of Dates

Forgetting to add 3 days of grace
Students stop once they reach the end of the term.
Fix: Make grace the compulsory step after the nominal date. Only skip it for bills on demand or at sight.
Counting the starting day when the term is in days
Students count the first day as day 1.
Fix: Exclude the starting day. The first day counted is the next day.
Counting 3 months as 90 days
Students convert months to days for ease.
Fix: Months are counted by calendar. 3 months after 15 March is 15 June, which is 92 days, not 90.
Moving to the next day when the due date is a holiday
Students assume payment is simply postponed.
Fix: For a public holiday, the preceding business day is the due date. Do not push it forward.
Taking the wrong starting date for after sight bills
Students use the drawing date out of habit.
Fix: Underline 'after sight' in the question and start from the date of acceptance.
Adding grace days before counting months
Students mix up the order.
Fix: Count the term first to get the nominal date, then add 3 days.

Worked examples

Example 1

A bill of exchange dated 15 January 2024 is drawn for 3 months after date. Find the date of maturity.

Show the solution

Starting date is 15 January 2024, as the term is after date.
Three months later is 15 April 2024. This is the nominal due date.
Add 3 days of grace: 15 April + 3 days = 18 April 2024.
Check holidays: none are mentioned, so no change.

Answer: The date of maturity is 18 April 2024.

Example 2

A bill dated 20 June 2023 is drawn for 60 days after date. Days of grace are to be allowed. Find the date of maturity.

Show the solution

Starting date is 20 June. Exclude it from the count.
Days left in June: 30 − 20 = 10 days. Remaining term: 60 − 10 = 50 days.
July has 31 days. Remaining: 50 − 31 = 19 days.
So the nominal due date is 19 August 2023.
Add 3 days of grace: 19 August + 3 = 22 August 2023.
Check holidays: none are mentioned, so no change.

Answer: The date of maturity is 22 August 2023.

Exam tips

Write the nominal due date and the grace addition on separate lines. Step marks are given for each.
Underline the words 'after date', 'after sight', 'on demand' and 'at sight' before you start.
Check the year for February. A leap year gives 29 days, as in 2024.
State your assumption on holidays in one line if the question is silent. Then proceed.
Use the due date you find in the journal entries for later questions on discounting and dishonour.

Practice questions from Bills of Exchange and Promissory Notes

Due Date, Maturity and Calculation of Dates: frequently asked questions

How do I calculate the due date of a bill of exchange?

Find the starting date, add the term in months or days to get the nominal due date, then add 3 days of grace. If the result is a public holiday, move to the preceding business day.

Are days of grace allowed on a bill payable on demand?

No. Grace days apply to bills payable after a fixed period. A bill payable on demand or at sight is due on the day it is presented.

What if the due date falls on a holiday?

If it is a public holiday, the bill falls due on the preceding business day. If it is an emergency holiday, the next business day applies.

How is 3 months after date calculated?

Move three calendar months forward from the date of the bill, keeping the same day number, then add 3 days of grace. Do not use 90 days.