What is the limitation period under Article 1 of the Schedule to the Limitation Act, 1963 for a suit on the balance due on a mutual, open and current account where there have been reciprocal demands between the parties?

1. **Article 1** of the Schedule covers '**suits relating to accounts** — for the balance due on a mutual, open and current account, where there have been reciprocal demands between the parties'. 2. The period of limitation is **THREE YEARS**. 3. The time from which the period begins to run is '**the close of the year in which the last item admitted or proved is entered in the account, such year to be computed as in the account**'. 4. So the running of limitation depends on the latest acknowledged entry, not on the original transaction date. _Source: ICSI CS Executive — Lesson 7, Annexure Article 1, p. 160._