In the world of financial accounting, everything falls under the influence of payment. Payment either means loss or profit depends on if it is cash receivable or payable. Most often, there stays a time limit with the payable amount. Dishonour and noting of the bill homework answers demonstrate the dishonour and noting of the bill. This article will also explain the scenarios in which dishonour of bill happens for easy understanding. So, let’s get started with the topic.
Before we head to details, it is important to understand what the meaning of â€˜Dishonour of Billâ€™ is. There are times when people fail to pay the bill for the decided time frame. The scenario of failing to pay the bill is referred as dishonour of the bill.
In the simple words, honouring something means serving the purpose for it. When the purpose of something is not served, we call it dishonour for the general situation. Similarly, the bill is prepared for the services company has offered, goods that company has sold, or the charges of the workforce. If the payment of the bill is not made in a precise manner by following specific timeline and rules then, it may be considered as the dishonour of bill.
Cases of dishonouring of bill
Now, let’s analyse the cases in which bill can be dishonoured with the help of dishonour and noting of the bill homework answers.
The first and fundamental scenario can be a denial of payment. Suppose, someone considered not paying the amount regardless the situation, it is dishonour of the bill.
The second scenario can be when someone forgets to pay the price or by some reasons the payment is not made.For example, withholding a payment due to technology failure is dishonouring the bill.
Bills have the specific timeline of payment for the accounting purposes and income management of the company. If for some reasons, the price is not paid within the due time, it is again dishonour of the bill.
Failing to pay full amount is again a dishonour of the bill. There are some scenarios when people pay only some percentages of the bill for several reasons. To honour the bill the full bill amount has to be paid within the window of time.
In some cases, exceeded time limits cause the repeated proposal generation for the payment amount. But, this is dishonour of bill one more time.
Drawee without finances
Financial stability is not a permanent thing. Companies, banks or any financial situations are no exceptions. There are firms which go bankrupt and cannot make the payment due to lack of money. No payment due to lack of money is a dishonour of bill.
We all understood the cases of dishonour of bill payments by now.
Dishonour and noting of the bill homework answers explain the noting of the bill in the next section.
What is noting of the bill
When the bill is dishonoured, it is likely that the payee firm involves the lawyer in the situation for legal steps. Documentary evidence stating the dishonour of the bill by a lawyer is dishonour of the bill.
If the drawee does not make the payment, a company can go to court for filing a lawsuit. Drawee can apply a pleading that payment was withheld because the bill was not presented at all. It may be hard to prove to the court that the statement was submitted for the payment without any proof of document.
For the evidential purposes, the report of the bill can be taken to drawee by a lawyer. A lawyer can ask drawee to make a payment. If opposite party refuses to pay, attorney notes down the statement of dishonouring the bill, referred as noting of the bill. â€˜Notary Publicâ€™ is the term for the lawyer performing this action.
The charges of a notary public are ‘Noting Charges’ which the firm as to pay as a part of remuneration.
Aspects of dishonouring of this bill
Facts about noting of the bill explained by dishonour and noting of the bill homework answers:
- The process of noting of the bill is initiated by the firm which owns the bill. The possessing company can be any business. For example, a bank, a manufacturing company.
- The party which initiates the noting process does not lose anything as all the noting charges can be collected from drawee, no matter who pays the noting charges initially. It is because the drawee is responsible the dishonouring the bill.
- The company which has the bill in possession pays the noting charges in cash to the notary public.
- Every small detail is noticed in the noting of the billing statement.For example, date, fact, reasons for dishonouring the bill.
- For the recording purposes, drawee opens a ‘Noting Charges Account’. Then debits the ‘Noting Charges Account’ and credits the drawer’s account.
These are some fundamental facts regarding dishonouring the bill and noting of it. The topic is represented by dishonour and noting of the bill homework answers for the better financial understanding of payment terms to realise the importance of payment, receivable and payable.
Every bill presented to someone has to hold its record to account for the evidence of representation. Otherwise, it can complicate the legal matters when dishonouring of the bill is done by drawee party. Hope this has topic has given the clear sense on financial payment matters for the firm and what happens when an attorney comes in the picture.