Question

Explain briefly the procedure of calculating the date of maturity of a bill
of exchange? Give example.

Answer 1

In the maturity, days of grace, which are 3 days are added to the period of payable amount.  Example is provided in the explanation.

Explanation:

The maturity of a bill of exchange means a date when a bill does not become due for the payment. In the maturity, days of grace, which are 3 days are added to the period of payable amount.  

Whatever time period of payable amount is given, the days of grace must be added to that in order to calculate the exact time for bill's maturity.

However, In the case, where maturity date falls on a public holiday, then the bill of exchange will become payable on the upcoming business day.  

Example of maturity calculation: if a bill is dated for March 20 and payable after 30 days, then the 3 days of grace would be added and it will payable after 33 days.