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What is meant by dishonour of the bill?
Our dishonour and noting of the bill homework help explain it quickly as no payment of bill is called as the dishonour of bill. It is called so because the motive of drawing an amount and that is how billis honoured as it has served right purpose. From there comes word dishonoring of the bill if its purpose is not being served properly.
Causes for dishonouring bill:
- If payment of bill is not made.
- Renewal of bill.
- If drawee gets bankrupted
- If bill is paid in instalments
- If bill payment is not in time
How does noting of the bill act like?
After a bill getting dishonored drawer might seek help of court for justice. Naturally, they would collect evidencedrawee. Giving a reaction to this drawer is most likely to deny about bill.
Now the lawyer will ask the drawee to pay bill amount. If the drawee refuses to pay then court will issue a stamped statement and will get it signed from the drawee. Now this noting down act of court or lawyer is called the noting of bills.
Key points on noting of bills:
- The one to whom the bill will belong can start whole procedure.
- The payment of noting charges must be madein
- It is nor a gain nor a loss, just a fine.
- These charges will not be included in books of accounts.
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