Q.What is meant by 'noting' of a bill? Explain the role of a Notary Public and the treatment of noting charges in the books of account.

When a bill is dishonoured, the holder needs formal, independent proof of that fact before pursuing recovery — this formal certification process is called noting. …

When a bill is dishonoured — the drawee having refused or failed to pay on the due date — the holder needs reliable, independent evidence of that fact before taking further recovery action or approaching a court. This certification is obtained from a Notary Public, an official specifically authorised to verify and record such commercial facts.

The process, called noting, works as follows: the holder hands the dishonoured bill to the Notary Public, who once again formally presents it to the drawee; if the drawee still refuses or is unable to pay, the notary records the date and the reason for dishonour on the back of the bill (or on a slip attached to it) and certifies it with an official notarial seal and signature. This noted bill becomes strong, near-conclusive evidence of dishonour. …

Confusing noting with discounting (two entirely unrelated procedures); and wrongly debiting the noting charge to a general expense account of the holder ins …