difference between discount and noting charges - Accountancy - Depreciation Provisions and Reserves

Question

difference between discount and noting charges

Jayati Jawa · Accepted Answer

Basis of
Distinction
Discounting Charges
Noting Charges

Meaning
When the bill is discounted with the bank then
some charges are charged by the bank which is known as Discounting
Charges
Charges that are paid to the Notary Public in
order to get the bill noted after dishonour are known Noting
Charges

Paid to
These are paid to the bank
These are paid to the notary public

Time of Payment
These are paid before the due
date of the bill
These are paid after the due
date of the bill

Basis of Distinction	Discounting Charges	Noting Charges
Meaning	When the bill is discounted with the bank then some charges are charged by the bank which is known as Discounting Charges.	Charges that are paid to the Notary Public in order to get the bill noted after dishonour are known Noting Charges.
Paid to	These are paid to the bank.	These are paid to the notary public.
Time of Payment	These are paid before the due date of the bill.	These are paid after the due date of the bill.