CA Foundation · Accounting · Bills of Exchange and Promissory Notes
Ramesh Traders drew a bill of ₹60,000 on Sunil & Co. on 1 March for 3 months, and Sunil & Co. accepted it. Counting days of grace, on which date will the bill fall due for payment?
The bill falls due on 4 June. Three months from 1 March gives 1 June as the nominal due date, and the three days of grace are then added, making the legal due date 4 June.
- A1 June
- B3 June
- C4 JuneCorrect
- D31 May
Explanation
The bill is for 3 months from 1 March, so the nominal due date is 1 June. Three days of grace are added to arrive at the legal due date, 4 June. Choosing 1 June ignores grace days, and 3 June adds only two days.
Did you get it right without looking?
One question tells you little. A timed set on Bills of Exchange and Promissory Notes shows your real accuracy, how long you take and where you lose marks.