CBSE Questions for Class 10 Elements Of Book Keeping And Accountancy Bills Of Exchange Quiz 9 - MCQExams.com

The term maturity refers to the date on which a bill of exchange or a promissory note becomes due for payment. In arriving at the maturity date three days, known as days of grace, must be added to the date on which the period of credit expires, instrument is payable. A bill dated 1st January 2014 is payable 60 days after date, it falls on 5th March, 2014 i.e. 63 days after 1st January if it were payable 60 days after date.

When Acceptor or Drawee does not pay the amount of bill to the holder on the due date it is known as dishonoring the bill. To record this dishonour, Ram will paas the following entry: 

Mohan’s A/c  Dr

         To Bank A/c. 

Since, the bill was discounted by Ram, the bank will become his creditor.

According to Section 2(40) of the Companies Act, 2013, “financial statement” in relation to a company, includes—

(i) a balance sheet as at the end of the financial year;

(ii) a profit and loss account, or in case of a company carrying on any activity not for profit, an income and expenditure account for the financial year;

(iii) cash flow statement for the financial year; and

(iv) any explanatory note annexed to, or forming part of, any document referred above.

Hence, option D is correct.

In case due date for payment of loan or any other obligation falls on Public holiday/ saturday/ Sunday. Then is it payable on day earlier or later to due date.

The term maturity refers to the date on which a bill of exchange or promissory note becomes due for payment. In arriving at the maturity date three days known as days of grace, must be added to the date on which the period of credit expires, instrument is payable. If A draws a bill of exchange of Rs. 4,000 on 15th August payable after 30 days after date, it falls on September 17th, i.e. 33 days after 15th August.