After Date

Understanding “After Date”

Definition

In the context of a bill of exchange, “after date” specifies that the time period for payment will start from the date indicated on the bill. For example, if the terms are “30 days after date,” payment is due 30 days from the date written on the bill. This term is crucial for setting clear expectations regarding payment deadlines.

Examples

30 Days After Date: A company issues a bill on August 1st with terms “30 days after date.” Payment would be due on August 31st.
60 Days After Date: A supplier provides goods with a bill dated March 15th, and the terms state “60 days after date.” The payment due date would be May 14th.

Frequently Asked Questions

What is the difference between “after date” and “after sight”?

After Date: The payment period starts from the date indicated on the bill. After Sight: The payment period starts after the bill is presented for sight and accepted.

How does “at sight” differ from “after date”?

At Sight: Payment is due immediately upon the presentation and sight of the bill. After Date: Payment is due after a specified period following the date mentioned on the bill.

How do I calculate the due date for a bill marked “90 days after date”?

Identify the date on the bill; if it’s January 1st, add 90 days. The calculated due date would be April 1st.

Can the “after date” term be altered once issued?

Generally, the terms specified on a bill of exchange cannot be altered without mutual consent of all parties involved.

Is “after date” used in international trade?

Yes, “after date” is a common term in international trade, helping provide clear payment timelines across different jurisdictions.

Bill of Exchange: A written, unconditional order directing one party to pay a fixed sum of money to another party.
After Sight: Specifies that the payment period will begin once the bill has been presented and sighted.
At Sight: Payment is due immediately upon presentation of the bill.

Online Resources

Suggested Books for Further Study

“The Law of Bills of Exchange” by M. A. Courmaguet - A comprehensive legal guide on bills of exchange.
“Bills of Exchange and Promissory Notes” by Stephen M. Garvey - This book provides detailed insights into the practical and legal aspects of these financial instruments.
“Financial Instruments: Equities, Debt, Derivatives, and Alternative Investments” by David Holden - Offers a broader context on different financial instruments, including bills.

Accounting Basics: “After Date” Fundamentals Quiz

### What does "30 days after date" on a bill of exchange mean? - [x] Payment is due 30 days from the date on the bill. - [ ] Payment is due 30 days after the bill is signed. - [ ] Payment is due 30 days after the bill is presented. - [ ] Payment is due immediately upon receiving the bill. > **Explanation:** "30 days after date" means that the payment is due 30 days from the date specified on the bill of exchange. ### If a bill of exchange is dated January 15th and states "60 days after date," when is the payment due? - [ ] March 15th - [ ] April 16th - [ ] March 16th - [x] March 16th > **Explanation:** Adding 60 days to January 15th results in a due date of March 16th. ### What key information does the term "after date" provide in a bill of exchange? - [ ] The place of payment - [ ] The party responsible for payment - [x] The commencement date for the payment period - [ ] The payment method > **Explanation:** The term "after date" provides the commencement date for calculating when the payment is due. ### How does "after date" differ from "after sight"? - [ ] They both mean the same. - [ ] "After date" is used for checks, and "after sight" is used for promissory notes. - [x] "After date" starts the payment period from the date on the bill; "after sight" starts the payment period after the bill is sighted. - [ ] "After date" is used in domestic transactions, and "after sight" is for international transactions. > **Explanation:** "After date" indicates that the payment term starts from the bill's date, while "after sight" marks it from the date the bill is sighted and accepted. ### What is the payment due date for a bill dated July 1st with terms "90 days after date"? - [ ] August 30th - [ ] September 1st - [x] September 29th - [ ] October 1st > **Explanation:** Adding 90 days to July 1st results in a due date of September 29th. ### Which term starting from a specific date affects the payment period in a bill of exchange? - [ ] On Date - [x] After Date - [ ] Datum Date - [ ] Payment Date > **Explanation:** "After Date" is the correct term that begins the payment period from a specific date on the bill. ### Can the terms "after date" be legally changed after issuance? - [ ] Yes, at any time unilaterally - [x] Yes, with mutual consent of all parties - [ ] No, they are fixed and cannot be changed - [ ] Yes, by the issuer alone > **Explanation:** The terms "after date" can be changed, but only with the mutual agreement of all concerned parties. ### Why is "after date" significant in international trade? - [ ] It defines the currency used - [ ] It identifies the issuer - [x] It provides a clear payment timeline - [ ] It determines the method of shipment > **Explanation:** "After date" is significant as it provides an unambiguous timeline for when payments are due, crucial for international transactions. ### How do you compute the payment due for a bill marked "30 days after date" issued on June 15th? - [ ] By adding 15 days from June 15th - [ ] By adding 45 days from June 15th - [x] By adding 30 days from June 15th - [ ] By adding 20 days from June 15th > **Explanation:** To compute the due date, add 30 days to June 15th, resulting in a due date of July 15th. ### Which payment term is due immediately upon presentation? - [ ] After Date - [ ] After Sight - [x] At Sight - [ ] At Date > **Explanation:** "At sight" means the payment is due immediately upon the presentation of the bill.

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