Vidyalelo
Commerce · Q391

Accounting

Graduate and Post Graduate · Commerce · question 391

Q391

Noting charges are paid at the time of

A.
Renewal of the bill
B.
Retirement of the bill
C.
Dishonor of the bill
Answer
D.
None of the above

Answer: Option C

Solution

Answer: Option C
Solution:
Noting charges are paid at the time of Dishonor of the bill. When a Bill of Exchange is dishonoured, in order to prove the fact, the drawer (or holder) may get the bill of exchange noted and protested through a public official known as “Notary Public” Noting is the recording of the fact of dishonour by a Notary public which becomes an evidence of dishonour.