Subscription Paid In Advance Journal Entry

Subscription paid in advance is a Current Asset as it is shows that Expense which is paid in advance to the company but still the goods or services are not delivered or rendered at the end of the accounting period to the company which paid subscription in advance.

The adjusting entry to record in the books of Accounts is shown below:

                    Subscription Paid In Advance a/c  XXX

                                                                           Subscription Expense a/c  XXX

                                                             (Subscription Paid In Advance)

 

Subscription paid in advance is shown on Balance Sheet as a Current Asset on Assets side of balance sheet.

Subscription paid in advance is also called Prepaid Subscription.