Calculation of due date of bill of exchange

Maturity of Bill

Maturity of bill is the date when the bill of exchange becomes due to be paid. To calculate this date, additional three days are added as a period of grace.

Calculation of Due Date of Bill of Exchange

Due Date of Bill of Exchange is calculated to find the date , on which the payment of the bill of exchange is due. For calculation of due date of bill of exchange, we follow the following steps : –

• Identify the start date i.e, the date on which the Bill of Exchange is drawn ;
• Add the number of days/month after which the bill is due ;
• Add 3 days , as period of grace.

Calculation of due date of bill of Exchange – Example 1

A Bill of Exchange was drawn on 1 March 2017 . Term of the Bill was 4 months . The due date of the bill will be________ ?

Explanation:

Maturity date of Bill of Exchange will be:

Date of drawing + Tenure  + 3 Days Grace Period

1 March 2017 + 4 months + 3 Days Grace Period

04 July 2017

Calculation of due date of bill of exchange – Example 2

A Bill of Exchange is drawn on 1 March 2018 . Term of the Bill was 20 days. The due date of bill will be ___________?

Explanation:

Due date of Bill will be:

Date of drawing the Bill + Tenure of the Bill + 3 Days Grace Period

1 March 2017 + 20 days + 3 Days Grace Period

24 March 2018.

Thus, maturity of bill is the date when the payment of bill becomes due and is calculated by adding Date of drawing + Tenure + 3 Days Grace Period.

Chapter 8 – Bill of Exchange Accountancy Class 11 Notes

1. Bill of Exchange
2. Promissory Note
3. Advantages of Bill of Exchange
4. Maturity of Bill – Calculating Due date of Bill of Exchange
5. Discounting and Endorsement of Bill
6. Accounting Treatment
7. Dishonor of a Bill
8. Renewal of the Bill
9. Retiring of the Bill