Relocation expenses given to an employee during appointment has been subsequently recovered from him when he left the company because as per the terms he has serve the company for minimum 2 years.As he left before such term as per the agreement Relocation expenses say for example Rs.50000/- has been recovered.The company has adjusted the amount recovered in SUNDRY WELFARE EXPENSES a/c.Is this right?If not under what head it should be booked?
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Relocation expenses
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If initially, the amount paid to the employee was debited to SUNDRY WELFARE EXPENSES a/c, then it may be appropriate to credit the same a/c on recovery, as you have mentioned.
In other words, it may be appropriate to reverse the entry passed.
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