CMA Foundation · Fundamentals of Financial and Cost Accounting · Bills of Exchange
A 3-month bill dated 10 March 2025 is drawn by Kiran Ltd on Anand Ltd and accepted. Allowing three days of grace, on which date is the bill legally due?
The bill is legally due on 13 June 2025. Three months after 10 March 2025 is 10 June 2025, and adding the three days of grace gives the maturity date of 13 June 2025, on which the drawee must pay.
- A10 June 2025
- B13 June 2025Correct
- C12 June 2025
- D14 June 2025
Explanation
Three months from 10 March gives 10 June 2025. Adding 3 days of grace gives 13 June 2025, the date of maturity. Taking 10 June ignores grace days, which is the main mistake.
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