Q.What do you mean by Noting charges ?

A bill is honoured when the drawee pays its full amount to the holder on the due date — the normal, expected outcome, closed in the books by debiting Bank and crediting Bills Receivable (drawer) or debiting Bills Payable and crediting Bank (drawee).

A bill is dishonoured when the drawee fails or refuses to pay on the due date. The holder then gets the fact of dishonour certified by a Notary Public — a process called noting — and pays a fee for it, called the noting charge. Because the dishonour is the drawee's fault, this noting charge is always added to the …