Subscription Received In Advance Journal Entry

Subscription received in advance is a Current Liability as it shows that amount of Revenue which is received in advance which is actually not earned for the period by the organization as the goods or services are still not delivered or rendered against the amount received.

The organization recognizes subscription received in advance as Unearned Revenue according to Accrual Basis of Accounting.

The adjusting entry to record subscription received in advance is shown below:

                                         Subscription a/c  XXX

                                                               Subscription Received In Advance a/c .XXX

                                                        (Subscription Received In Advance)

Subscription received in advance is shown on Liabilities & Equity side of Balance Sheet as a Current Liability.

Subscription received in advance is also known as Subscription In Arrears and Unearned Subscription