Section 24 in The M.P. Janpad Panchayats (Accounts) Rules, 1999
24. Cancellation of Cheques.
- When a cheque is required to be cancelled, the cancellation must be recorded on the counter-foil of the cheque and the cheque so cancelled should also be attached to the counter-foil. On cancellation of the cheque a reversal entry shall be made in the cash book to nullity the effects of the earlier entry. Similar separate entry shall have to be made in the Bank Register also. The same procedure shall be adopted where the instructions arc issued to the Bank for "stop payment" of a cheque issued and accounted for by the Janpad Panchayat.
