Question

Which transactions determine the Balance of Trade? When is Balance of Trade in Surplus?

Answer 1

Your Answer is :-

Receipts from exports are recorded as credit entry and payments for imports are recorded as debit entry..The sum total of current account is called Balance of Trade.

If receipts from merchandise exports are more than payments for merchandise exports,then there is surplus in balance of trade.

Hope it helps

Answer 2

Explanation:

A trade surplus is an economic measure of a positive balance of trade, where a country's exports exceed its imports