In advance for the next year, our accountant should record the receipts as a debit to cash and should make a credit to Revenue account (such a Lease revenue) or A differed credit account (such as differed lease income)
Since you're being paid in advance, before you have actually earned the revenue, the credit will be to a deferred revenue account. That account shows up as a current liability on the balance sheet. It is a liability, because you still owe the use of the machinery for the next year to the customer. And, if something were to happen where you could not deliver the machinery to the customer, for example, if it broke down and could not be repaired or replaced, you would owe the customer his money back.
