Acconting entry for freight subsidy received

IF STOCK OF 2007 IS STILL NOT SOLD THEN REDUCE SUCH AMOUNT OF SUBSY FROM COST OF SUCH STOCK AND BALANCE AMOUNT WILL BE CREDITED TO P&L A/C AS INCOME

ENTRY WILL BE 

                                  FRIEGHT SUBSY A/C       DR.

                                           TO INVENTORY A/C 

                                            TO PROFIT & LOSS A/C (  BAL. AMOUNT)

  IF STOCK OF 2007 IS SOLD THEN ALL AMOUNT OF SUBSY WILL BE CREDITED TO P&L A/C

ENTRY WILL BE

                                      FRIEGHT SUBSY A/C    DR.

                                              TO PROFIT & LOSS A/C                                      

if the provision for subsidy was made in the year 2007

bank ac --- - - - - - - - -  - -- dr.

freight subsidy receivable ac

if no provision was made

bank ac- - - - -- - - -- - dr.

to freight subsidy 

in my view this subsidy should be directly transffered to pand l ac. because this subsidy is received for freight on goods sold

freight subsidy is given by government to enhance the export hence it should be directly t/f to p and l ac -- -  

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