Balance of Capital Account

Transactions such as inflow of investment or inflow of forex are shown on positive or the credit side. Transactions which lead to outflow of investment or forex are recorded on negative or the debit side.
The credit value minus the debit value gives the balance of capital account. Surplus of capital account indicates a net inflow of capital in the country. Similarly, a deficit of capital account occurs when there is a net outflow of capital from the country.
3. In additions to above two there is an errors and omissions element in BOP which shows all the overseas transactions which could not be recorded.

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