Question

Noting charges are recovered by
A.Drawer from drawee
B.Drawee from drawer
C.Drawer from payee
D.Payee from drawer

Answer 1

Hint: Noting charges are the amounts paid by the drawer to notary, who warns the drawee of the bill to get clear in a specific time period.

Complete step-by-step answer:
Noting charges is always recoverable from the party responsible for dishonor (the acceptor). So, the Noting charges are recovered by the drawer to draw.

Note:
When a bill of exchange is dishonored then in order to prove this fact to the drawer may get it noted and protested through a public official known as a notary public for which it charges its fees which called Noting charges. Such changes are recovered from the party responsible for the dishonor and when noting charges is paid at the dishonor of the bill the drawer always debit the noting charges account to the journal entry.