CMA Foundation · Fundamentals of Financial and Cost Accounting · Bills of Exchange
A bill dated 5 May 2025 is payable 'one month after date'. Which statement about its maturity is correct?
The nominal due date is 5 June 2025 and the bill matures on 8 June 2025. Where the term is stated in months, the same calendar date of the later month is taken, and three days of grace are then added.
- ANominal due date is 4 June 2025 and it matures on 7 June 2025
- BNominal due date is 5 June 2025 and it matures on 8 June 2025Correct
- CNominal due date is 5 June 2025 and it matures on 5 June 2025
- DNominal due date is 6 June 2025 and it matures on 9 June 2025
Explanation
When the term is in months, the calendar month is counted, so one month after 5 May is 5 June. Three grace days make 8 June 2025. Options with 4 or 6 June miscount, and 5 June ignores grace.
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