CA Foundation · Accounting · Bills of Exchange and Promissory Notes
A bill drawn on 31 December 2023 is payable 2 months after date. Under the rule of calendar months, what is the legal due date including grace days? (Year 2024 is a leap year.)
The legal due date is 3 March 2024. Two calendar months after 31 December falls in February, which has no 31st, so the last day, 29 February 2024, is taken. Adding three days of grace gives 3 March 2024.
- A3 March 2024Correct
- B2 March 2024
- C29 February 2024
- D1 March 2024
Explanation
Two months after 31 December is 29 February 2024, since there is no 31 February; the month's last day is used. Adding three days of grace gives 3 March 2024 (1, 2, 3 March). Choosing 29 February ignores grace days; 2 March counts only two grace days.
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