 We are going to see about an economic term, balance of payment. It describes a country's transactions with the rest of the world. It contains two accounts, current and capital account. Current account includes trade in goods and services, transfer payments, income receipt and payments to and from abroad. Subcurrent account represents a country's net income over a period of time. If current account is surplus, it means receipts or more than payments. Now moving on to capital account includes borrowing and lending investments to and from abroad, sub-capital account records the net change of assets and liabilities during a particular year. If the capital account is surplus, it means capital inflow is greater than capital outflow. BOP account is based on double entry system which contains two sides. Any transaction which brings in foreign currency is recorded on the credit side whereas any transaction that causes a country to lose foreign currency is recorded on the debit side. So ultimately if BOP is a surplus, it means the credit side is greater than the debit side. There will be a balance in the sense that a current account deficit or surplus must be offset by a capital account surplus or deficit.