Bill of Exchange

A bill of exchange should be duly presented for payment on the date of its maturity. The drawee is absolved of his liability if the bill is not duly presented. Proper presentation of the bill means that it should be presented on the date of maturity to the acceptor during business working hours. To establish beyond doubt that the bill was dishonoured, despite its due presentation, it may preferably to be got noted by Notary Public.

Noting authenticates the fact of dishonour. For providing this service, a fees is charged by the Notary Public which is called Noting Charges . The following facts are generally noted by the Notary: Date, fact and reasons of dishonour; If the bill is not expressly dishonoured, the reasons why he treats it as dishonoured and; The amount of noting charges. The entries recorded for noting charges in the drawers book are as follows: When Drawer himself pays Drawee’s A/c To Cash A/c Where endorsee pays Drawee’s A/c To Endorsee A/c When the bank pays on discounted bill Drawee’s A/c When the bank pays in the event of sending the bill for collection to the bank Drawee’s A/c It may be noticed that whosoever pays the noting charges, ultimately these have to be borne by the drawee.

That is why the drawee is invariably debited in