Subscriptions received in advance refers to payments received by an organization for future services or products that have not yet been provided. For example, a magazine publisher may receive subscription payments for the next year's issues before the year begins.
Such payments are shown as a current liability in the balance sheet because the organization has an obligation to deliver the service or product in the future. Therefore, it is not included in the income and expenditure account or receipts and payment account until the services or products are provided.