Question

Noting charges account is debited by __________.

• A. the Holder of the Bill.
• B. the Discounting banker
• C. the Acceptor
• D. the Endorser

Answer 1

Answer: (A)

the Holder of the Bill.

A bill of exchange should be duly presented for payment on the date of its maturity. The drawee is absolved of his liability if the bill is not duly presented. Proper presentation of the bill means that it should be presented on the date of maturity to the acceptor during business working hours. To establish beyond doubt that the bill was dishonored, despite its due presentation, it may preferably to be got noted by notary public. Noting authenticates the fact of dishonor. For providing this service, a fees is charged by the notary public which is called noting charges. Hence, Noting charges account is debited by the holder of bill.