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InterviewSolution
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Balance of Payment always balances in the accounting sense. Explain briefly. |
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Answer» The total receipts in the BOP account are equal to the aggregate payments. Hence, there is neither any surplus nor any deficit in the BOP account. In fact, the bookkeeping or accounting sense every credit. Entry must have a corresponding ‘debit’ entry. The golden rule of double-entry bookkeeping is Debit what comes in and Credit what goes out. The aggregate ‘credit balance’ of all credit accounts must be equal to the aggregate ‘debit balance’. So in the accounting sense, the BOP account is always balanced. |
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