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

Drawer

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Drawee

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Payee

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Bank

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is D
Bank

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

Suggest Corrections

Similar questions

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

Who pays the noting charges in case of dishonor of bills of exchange sent for collection for bank?

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

When noting charges are paid by the bank at the time of dishonor of bill the Drawee credits :

Join BYJU'S Learning Program

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

The correct option is D Bank Bank pays the noting charges when a bill which has been discounted with the bank is dishonored by the drawee.

The correct option is D
Bank

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