Question

What is capital transfer
What is balance of payment

Answer 1

Hi,

Capital transfers are those entries required to offset transactions recorded for forgiveness of a liability by a creditor, the provision of cash when linked to a change in ownership of fixed assets, or the transfer in kind of ownership of a fixed asset without a quid pro

The balance of payments, also known as balance of international payments and abbreviated B.O.P. or BoP, of a country is the record of all economic transactions between the residents of the country and the rest of the world in a particular period of time.

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