If a bill is dishonoured, noting charges paid by the holder are ultimately borne by

1. Noting charges arise because the acceptor failed to honour the bill. 2. Hence the acceptor (drawee) must reimburse them along with the bill amount. 3. The holder pays initially but recovers from the acceptor. 4. Hence (C) is correct. _Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 7 "Bills of Exchange", §7.5 ¶§7.5_