Asked in a 2018 paper

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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