The asset account Rent Receivable is used by the landlord to report the amount of rent that has been earned by the landlord but has not been received from the tenant as of the balance sheet date. The liability account Rent Payable is used by the tenant to report the amount of rent that the tenant owes for rent but has not been paid as of the balance sheet date.
If the rent is to be paid on the first day of each month, and if the rent is paid on time, the landlord will have a zero balance in Rent Receivable. Similarly, the tenant will have a zero balance in Rent Payable. It is only if the tenant falls behind in making the rent payments that amounts will be entered into the Rent Receivable and Rent Payable accounts.