Difference Between Subscription Received In Advance And Subscription Paid In Advance

Subscription Received In Advance or Subscription In Arrears is the amount of income or revenue received by the company in advance from the customers / clients against which still the goods or services are not delivered or rendered for the accounting period while Subscription Paid In Advance or Prepaid Subscription is the amount of expense paid in advance against which still the goods or services are not delivered or rendered at the end of the accounting period.

Subscription received in advance is a Current Liability as it shows the revenue received in advance. So it is shown on the Balance Sheet as a current liability on Liabilities & Equity side while Subscription Paid In Advance is a Current Asset as it shows the expense paid in advance. It is also reported on balance sheet but on Assets side as a current asset.