Balance of payment means an accounting statement that summaries all the economic transactions between the residents of the home country and the residents of all other countries during a given period of time. Balance of Payment Account shows classified record of all receipts on account of goods exported, services rendered and capital received by a country and payments made by that country on account of goods imported, services received from and capital transferred to foreigners.
Following are the components of Balance of Payment Account:
- Export and import of commodities.
- Services rendered and received.
- Unrequited receipts and payments.
- Capital receipts and payments.