abhishreshthaa
Abhijeet S
The BOP records each transaction as either a plus or a minus. The general rule in BOP accounting is the following:-
a) If a transaction earns foreign currency for the nation, it is a credit and is recorded as a plus item.
b) If a transaction involves spending of foreign currency it is a debit and is recorded as a negative item.
The BOP is a double entry accounting statement based on rules of debit and credit similar to those of business accounting & book-keeping, since it records both transactions and the money flows associated with those transactions.
Also in case of statistical discrepancy the difference amount is adjusted with errors and omissions account and thus in accounting sense the BOP statement always balances.
The various components of a BOP statement are:
A. Current Account
B. Capital Account
C. IMF
D. SDR Allocation
E. Errors & Omissions
F. Reserves and Monetary Gold
a) If a transaction earns foreign currency for the nation, it is a credit and is recorded as a plus item.
b) If a transaction involves spending of foreign currency it is a debit and is recorded as a negative item.
The BOP is a double entry accounting statement based on rules of debit and credit similar to those of business accounting & book-keeping, since it records both transactions and the money flows associated with those transactions.
Also in case of statistical discrepancy the difference amount is adjusted with errors and omissions account and thus in accounting sense the BOP statement always balances.
The various components of a BOP statement are:
A. Current Account
B. Capital Account
C. IMF
D. SDR Allocation
E. Errors & Omissions
F. Reserves and Monetary Gold