cancelled room with BOOKING.COM still got charged

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We reserved a room via booking.com ( on no pay till we stayed.). the event we booked for was changed from the friday night to the sunday, so (2 months before arrival )we cancelled fridays room and got one for the sunday and had a cancellation confirmation email from booking.com.. on arrival at hotel they said they have 2 rooms booked in our name 1 for the friday and 1 sat night (where the extra night from have no idea) PLUS the room for that sunday which we did book. the hotel said they have no cancellation notice and after a day of investigating by them we checked out with the receptionist saying we only have our 1 sunday stay to pay for (presumed they sorted the err) ... arrive home t check bank and the hotel has taken £167 for the 2 rooms which we didnt have...any suggestions on next course of action .
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