WAEC - Accounts Principles Of Accounts (2014 - No. 39)
subscription in advance is classified in the balance sheet as
an asset
a liability
a deficit
a surplus
Explanation
When a company receives money in advance of earning it, the accounting entry is a debit to the asset Cash for the amount received and a credit to the liability account such as Customer Advances or Unearned Revenues. The subscription in advance is a liability because it is a future earning that will be due in future, it means the company is owing outsiders the said amount tied to the payment.
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