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Noting Charges

  • 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. The noting is done by recording the fact of dishonour, the date of dishonour, the reason of dishonour, if any
  • Such Noting is done within a reasonable time after dishonour.
  • For doing all this, the notary public charges his fees which is called Noting charges
  • The amount of noting charges is recovered from the party responsible for dishonour, generally the debtor
  • Protest is the formal certificate given by the Notary public

Journal entries in the books of the drawer

Illustration 4


A bill for ₹ 2, 000 is drawn by X on Y and accepted by the latter. X got the bill discounted with his banker. Discounting charges ₹ 20. The bill was dishonoured on the date of maturity and bank paid the noting charges of ₹ 100. Journalise the above transactions in the books of X and Y.



In the books of X


In the books of X

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