Adjustment of cancelled, lost or lapsed cheques

F.A.C. 22.

87. If a cheque which has been drawn and entered in the cash-book has to be cancelled subsequently, the amount of it should be charged on the creditor side as a "cancelled cheque" the cancelled cheque being treated as the voucher. Simultaneously an entry should be made on the debtor side, as indicated below:

(a) If the cancelled cheque is immediately replaced by a fresh cheque—The fresh cheque should be shown as "Forest remittance," the number and date of cheque in lieu of which it is drawn being quoted in the entry.

(b) If the cancelled cheque is not replaced immediately—The expenditure in payment of which it was drawn has to be written back. An entry of the cancelled cheque should therefore, be made on the debtor side as for a cash recovery of a service payment (paragraph 49).

There will thus be no fresh charge against the head of service originally debited, even if the cancelled cheque is renewed.

"A cheque remaining unpaid for any cause for twelve months after the month of its issue should be cancelled and its amount written back in the above manner."

F.A.C. 23.

88. If a cheque drawn by a disbursing officer is reported to have been lost, the fact should be intimated to the treasury officer, concerned and a certificate of non-payment obtained in accordance with paragraph 65 of volume V of the Handbook. The lost cheque should then be treated in the accounts in all respects like a cancelled cheque, the treasury certificate of non-payment being regarded as a voucher in support of the entry of cancellation on the creditor side of the cash account.

F.A.C. 24.

89. If a lapsed or time-expired cheque is presented for renewal, it should not be effected by altering the date. The lapsed cheque should first be taken back and cancelled, and then a fresh cheque should be issued, vide paragraph 87.

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