Loan Term
If the loan expresses the term in months, the maturity date is the same day as the loan is made, after counting the number of months specified. If the loan is made January 5 and it is for three months, then the loan comes due April 5.
When the term is expressed in days, you actually have to count the days. Let's say a loan is made on January 5 for 60 days. You start counting with the day after the loan is made and continue counting until you have counted 60 days.
| January 6–31 | 26 days | |
| February | 28 days (54 days total, so far) | |
| March | 6 days (60 days total) |
The 60-day loan made on January 5 matures on March 6. If we made a two-month loan on January 5, it would mature on March 5.
Get Accounting Demystified now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
