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What is difference between balance of payment current account and balance of payment capital account?
Wiki User
∙ 11y ago
BOP current a/c records receipts from exports of goods and services sold abroad, payments for imports of goods and services from abroad, net interest income paid abroad, and net transfers abroad (such as foreign aid payments). It equals the sum of exports minus imports, net interest income, and net transfers.
BOP capital a/c records foreign investment in Australia minus say Australian investment abroad.
For more infor...(Doug, et..al:1953 6th edition: pp.544)
Wiki User
∙ 11y ago
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Why is a capital account has credit balance?
The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What is the normal balance of a capital account?
Capital account has credit balance as a normal balance of account as it is the amount company requires to return back to it's owner at the time of liquidation.
What is the Difference between accumulated depreciation and depreciation?
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.
WhAT IS THE Difference between double account system and double entry system?
The difference between double account system and double entry systems are noted below: 1. Double account system is necessary only for Govt. service rendering org. but double entry system is applicable for all types of org. 2. In double account system balance sheet is divided into two part ie; Capital Account, and general balance sheet but in double entry system only one balance sheet is prepared.
Why is a capital account has credit balance?
The normal balance in a capital account is a credit. Capital is a balance sheet account. Assets = Liabilities + Capital
What is the relationship between capital account balance and current account balance?
The balance of payments, then, is the sum of the balance on current account and the balance on capital and financial account. It is important to understand that the deficit indicated by the current account is financed through activities recorded on the capital and financial account. The deficit on the current account must be exactly offset by the surplus on the capital and financial account (if it is not, net errors and omissions will correct it). This means then that the sum of the current account and the capital and financial account is equal to zero.
What is the normal balance of a additional paid-in capital account?
Additional Paid-in Capital is a normal credit balance account.
What is the normal balance of a capital account?
Capital account has credit balance as a normal balance of account as it is the amount company requires to return back to it's owner at the time of liquidation.
What is a basic balance?
A basic balance is the net balance of the combination of a current account and a capital account in a balance of payments.
How differ the balance of trade from the balance of payments?
The Balance of Payments (BoP) is comprised of the Current Account, as well of the Capital and Financial Account. Within the Current Account, one will find a subcategory called Goods. The Balance of Trade is a term used to show the difference between Imports (IM) and Exports (X) within the Goods Category. This is also known as Net Exports.
What is the Difference between accumulated depreciation and depreciation?
Depreciation expense is a nominal account which will goin to net income at the end of term. Accumulated depreciation is a contra account with capital assets which shows up in balance sheet.
WhAT IS THE Difference between double account system and double entry system?
The difference between double account system and double entry systems are noted below: 1. Double account system is necessary only for Govt. service rendering org. but double entry system is applicable for all types of org. 2. In double account system balance sheet is divided into two part ie; Capital Account, and general balance sheet but in double entry system only one balance sheet is prepared.
Collect data on India's current account balance capital account balance and forex reserves for the period 2001-2006?
Collect data on India's current account balance capital account balance and forex resevers for a period 2001-2006?
Distinguish between Current account and capital account?
A current account is the balance of net transfers, trade in goods, net investment income from external assets and trade in services. A capital account shows the outflows and inflows of different forms of capital.
Is there a difference between a partnership balance sheet and a corporation balance sheet?
In partnership balance sheet capital of all partners is shown while in corporate balance sheet capital of all share holders is shown.
Why drawing balance is debit?
Drawings account is contra account for reducing the owners capital account and as capital account is credit so contra account should be debit so that it can use to reduce the balance from owner’s capital.
