What do You Mean By Balance of Payments?

A country alongside national accounts, maintains an account for international payments and receipts. Balance of payments refer to the account of all transactions made with foreign countries. It is also called balance of international payments. The transactions could be made by:
Individuals
Firms
Government
It is arranged in a single currency. It contains visible as well as the invisible transactions.
Any transaction received from abroad is treated as a credit and given a positive/ affirmative (+) sign. Similarly, any transaction which involves outflow or payment made to abroad is treated as a debit and is given negative (-) sign. For instance, import of goods brings money into the economy and hence is treated as a credit while an export of goods is treated as a debit item.