Advanced and deferred payments

Which T-accounts are affected when a client pays rents in advance?

Which accounting statement is affected is affected by this transaction- P$L or Balance sheet?

Hello,

Thank you for your question.

Prepaid rent is a prepaid expense which is a current asset account.

The T accounts affected when a client pays rent in advance are:

DEBIT Prepaid Rent
CREDT Cash

The financial statement affected by this transaction is the Balance Sheet as cash and prepaid rent are both asset accounts.