Question

3
A company located in India receives a loan from a company located abroad. This transaction will
be recorded in ...............of balance of payment account.
a. Credit side of current account.
b. Debit side of current account.
c. Credit side of capital account
d. Debit side of capital account​

Answer 1

Explanation:

c. Credit side of capital account

A company located in India receives a loan from a company located abroad. This transaction will

be recorded in Credit side of capital account of balance of payment account

Answer 2

Answer:

c is the answer c) Credit side of capital account

Explaination:

In easy words, credit means to take money on loan in interest and debit means to take money from your saved money, now we know it's not debit but weather it's capital or current ; well it's capital cause we are receiving it from abroad.

hope it answers you question