CA Foundation · Accounting · Bills of Exchange and Promissory Notes
A bill of exchange drawn payable 'at sight' or 'on demand', without any stated time, is due for payment:
A bill payable at sight or on demand is due on presentation, and no days of grace are allowed. Grace days apply only to bills that are payable after a specified period of time, so this option is correct.
- AOn presentation, without days of graceCorrect
- BAfter three days of grace from presentation
- CAfter 30 days from the date of drawing
- DOn the last day of the month of drawing
Explanation
A bill payable at sight or on demand is payable immediately when it is presented to the drawee. Days of grace are not allowed for such bills because no time period is stated. The grace period applies only to bills payable after a fixed period or after sight or date.
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