Administration Manual - B.E.S.T. Undertaking.

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Receipt alongwith an application such payments are made at their
official ( known) postal address or sent to Bank/Bank Account by
Registered A.D. Post.
iii) Cancellation of Cheques ;-
There are two types of cancellation :-
a. Before Issue Cancellation.
b. After Issue Cancellation
a. Undertaking’s cheques are valid for three months. Cheques which
remain uncollected for more than three months are cancelled
alongwith vouchers. Cheque is attached with each voucher and
cancelled stamp is affixed on cheque as well as voucher. All vouchers
are listed in cheque cancelled registers. Similarly J/E is also prepared
for the total amount of cancelled cheque and the amount is transferred
to “ lapsed & undelivered cheques “ account. After verification of
voucher by Audit of the cheques alongwith register effect is taken in
Daily Cash Book.
b. In some cases where party is far off or unable to collect payment in
person, request is made to send their payment dues at their postal
address/bank. In such cases, we send them payment by registered
A..D. Post. However, due to incomplete address, change of residence,
incorrect bank account or closing of account, sometimes these cheques
are returned by postal authority. These cheuqes are issued to parties
and already accounted for payment. When these cheuqes are
cancelled with their vouchers, such cancellation is called as “ after
issue cancellation “. After canceling such cheques, cancelled cheque
advice is send to concerned department giving all details such as Bill
No., Name of the Firm, Amount, Reason for cancellation etc.