(1) In the event of a cheque being dishonoured by the bank, the fact shall be reported at once to the tenderer of the cheque intimating that the receipt issued for the payment through cheque stands cancelled and that he has to make payment of such amount in cash or demand draft only, along with the amount of bank charges debited by the bank, if any.
(2) In such cases, necessary entries shall be made in the books of account based on a payment voucher to reverse the effect of the original entry. Appropriate entries shall also be made in all the registers where such transaction has been posted to reverse the effect of the original entry. e.g.: DCB Register with proper reference to the above mentioned voucher.
(3) The dishonoured cheque shall be retained by the Accountant and it shall not be handed over to the Bill Collector or other collection staff till the amount is remitted by the party.
CHAPTER 6 GENERAL PROCEDURE FOR ACCOUNTING OF EXPENDITURE
35. Charge of expenditure. No expenditure shall be finally charged against the Municipal Fund and no adjustment shall be made without the charge being accepted by the Municipality:
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Provided that the amounts directly debited by the treasury under the orders issued under Section 314 of the Act, or by the Accountant General or the Deputy Commissioner under Section 321 may be charged finally against the concerned heads of account, even without acceptance of the Municipality.