CMA Foundation · Fundamentals of Financial and Cost Accounting · Bills of Exchange
Anil draws a 3-month bill on Bhatt on 1 March 2025 and Bhatt accepts it. Ignoring days of grace, what is the nominal due date, and in a proper case what is the legal due date after adding 3 days of grace?
The nominal due date is 1 June 2025, being three calendar months after 1 March 2025. Adding three days of grace makes the legal due date 4 June 2025, which is the date on which payment is actually due.
- A1 June 2025 nominal; 4 June 2025 legalCorrect
- B1 June 2025 nominal; 3 June 2025 legal
- C30 May 2025 nominal; 2 June 2025 legal
- D4 June 2025 nominal; 1 June 2025 legal
Explanation
Three months from 1 March 2025 gives 1 June 2025 as the nominal due date. Adding 3 days of grace gives 4 June 2025 as the legal due date. Counting grace days from 30 May or subtracting them is wrong.
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