Question

A bill of exchange is drawn on 1^st July, 2021 payable one month after the date. What will be the date of its maturity?

• A. 4^th August, 2021
• B. 5^th August, 2021
• C. 3^rd August, 2021
• D. 6^th August, 2021

Hint:

Remember: Always add 3 days of grace to the period when calculating bill maturity.

Answer 1

The Correct Option is A

A bill of exchange is a negotiable instrument that specifies a payment to be made at a future date.
When a bill is drawn ‘payable one month after date’, you add one month to the date it was drawn — in this case, 1^st July, 2021.
So, adding one month gives you 1^st August, 2021.
However, under the Negotiable Instruments Act, three days of grace are added to the due date to arrive at the final maturity date.
Therefore, 1^st August + 3 days = 4^th August, 2021.
So, the maturity date of this bill of exchange will be 4^th August, 2021.
Other options like 3^rd August or 5^th August do not match the correct grace period calculation.
Therefore, the correct answer is option (A) 4^th August, 2021.