When a bill discounted with bank gets dishonoured, will pay the noting charges.

drawer

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drawee

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endorser

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bank

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Solution

The correct option is D bank
Bank pays the noting charges at the time of dishonor and the same is debited to drawee's account.

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Similar questions

Who pays the noting charges when a bill which has been discounted with the bank is dishonored by the drawee?

A bill of Rs.12,000 was discounted by A with the banker for Rs. 11,880. At maturity, the bill returned dishonoured, noting charges Rs. 20. How much amount will the bank deduct from A’s bank balance at the time of such dishonour?

Vinod owed Rs.10,000 to Mohan. Mohan wrote a bill of exchange for Rs.10,000 on Vinod for three months, which was duly accepted by Vinod. Mohan discounted the bill with Bank at a discount of Rs.100. On maturity, Bill was dishonoured. Bank paid Rs.20 as noting charges. Pass journal entries in the books of Mohan.

Q. A Bill receivable for ₹ 10,000, which had been discounted for ₹ 9,700, is dishonoured and the Bank paid ₹ 20 as noting charges.
Pass entries in the books of drawer and drawee.

A owed to B Rs. 25,000 on 1st April, 2016. On the same date, B drew a bill of the same amount at 3 months on A. The bill was accepted by A. B discounted the bill with his bank on 4th April, 2016 @ 18 % per annum. On the due date, the bill was dishonoured and noting charges Rs. 250 were paid by the bank. A agreed to pay Rs. 5,250 and accepted another bill for the remaining amount for 2 months together with interest @ 12 % per annum. On the due date, the bill was duly met. Give the journal entries in the books of B.

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When a bill discounted with bank gets dishonoured, will pay the noting charges.

The correct option is D bankBank pays the noting charges at the time of dishonor and the same is debited to drawee's account.

The correct option is D bank
Bank pays the noting charges at the time of dishonor and the same is debited to drawee's account.