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State of Bihar - Section

Section 22 in Account Rules for Lodging House Funds

22.

When a signed cheque is cancelled it shall be enfaced or stamped "cancelled" by the President or the Secretary or the person administering the fund and shall be destroyed as soon as the accounts for the month in which the cheque was drawn have been passed by the Managing Committee or the person administering the fund. The fact of cancellation shall be noted in red ink over the initials of the drawer of the cheque upon the counterfoil and also across the passing order which has been enfaced on the voucher.