Section 20(7) in Punjab Panchayat Samitis and Zila Parishads Finance, Budget and Accounts Rules, 2014
(7)(a)If the cheque is cancelled before the cash transaction of the day in which it was issued, have been totaled the entry in the Cash Book shall be struck out in red ink under initials of the Executive Officer or the Chief Executive Officer, as the case may be, with a note that the cheque has been cancelled;(b)If, however, the Cash Book has been totaled and the correction is required to be made at any time with in the same financial year in which the cheque was issued, it should be posted on the payment side of the Cash Rook in the Treasury column as a minus entry under the Head of expenditure to which it was originally charged; and(c)If the correction is required to be made in the year subsequent to that in which the cheque was issued, the amount of the cancelled cheque should be credited in the Cash Book in the Treasury column' as 'Refund of the Expenditure of previous year'
