BALANCE OF PAYMENT

BALANCE
OF
PAYMENT
NAME4

NAME: KEERAT PREET KAUR

CLASS: 12th C
ROLL NO: 21
ADMISSION NO. : 12864
 MEANING

• Balance of payment is an accounting statement that

provides a systematic record of all the economics
transactions , between residence of a country and the
rest of the world, in a given period of time
• Balance of payment is a summary statement in which
all the economics transactions between residents and
rest of the world are recorded during a particular
COMPONENTS OF BOP

•Current Account
•Capital Account
CURRENT ACCOUNT
• Current account refers to an account which records all the transactions
relating to export and import of goods and service and unilateral
transfers during a given period of time
• Its components are:-
1. Export and import of goods and (merchandise transactions or
visible trade)
2. Export and import of service (invisible trade)
3. Unilateral or unrequired transfers to and from abroad (one sided
transactions)
CAPITAL ACCOUNT
• Capital account of balance of payment records all those transactions ,
between the residence of a country and the rest of the world , which
cause a change in the assets or liabilities of the residence of the
country or its government.
• Its components are:-
1. Borrowings and lendings to and from abroad
2. Investments to and from abroad
3. Change in foreign exchange reserves
 BOP V/S BOT
BALANCE OF
PAYMENT
• It is a systematic record of
all economic transactions
between the residents of
home country and rest of the
world .
• It records transactions of
capital nature
BALANCE OF TRADE
• Balance of trade refers to the
difference between amounts
of exports and imports of
visible items BOT= export –
import
• it does not record capital
transactions