alleryNoting charges paid by bank on dishonour are ultimately borne by:
ADrawer of the bill
BBank as bad debt
CDrawee of the bill (typical)
DPayee originally listed
Answer & Solution
Correct answer: C. Drawee of the bill (typical)
1. Noting charges arise due to drawee's dishonour.
2. They are recovered from drawee/maker.
3. The drawer adds noting charges to drawee's account on the dishonour entry.
_Source: ICAI BoS Foundation Paper 1, Ch 6 "Bills of Exchange", §4 noting charges_
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