Question

Noting charge is not an expense to

• A. Drawer
• B. Drawee
• C. Acceptor
• D. Debtor

Answer 1

Answer:

A. Drawer

Noting charges are fees paid to a notary when a bill of exchange or promissory note is dishonoured. These charges are incurred to protect the interests of the holder (payee) of the bill, not the drawer. Therefore, noting charges are an expense to the holder and not an expense to the drawer. Example: If a bill of ₹10,000 is dishonoured, the holder pays ₹50 as noting charges. The holder can claim this amount from the drawer, but the drawer does not record it as an expense until payment is demanded.