A Bill of Exchange is drawn on 1st April, 2018 payable after 3 months. The due date of the bill is?
Correct answer: C. 4th July,2018
- A. 30th June,2018
- B. 1st July,2018
- C. 4th July,2018
- D. 4th August,2018Government Agencies
Explanation
Three calendar months from 1 April end on 1 July, and three days of grace are added to a bill payable after a period. Therefore, the due date is 4 July 2018.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
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