A balance of payment can be defined as record of all the economic transactions by a country with other parts of world. Here is the list of various components of balance of payments –
1. Current Account – This account record all the imports and exports of goods and services between the countries. Exports are recorded as credits and imports are recorded as debits.
2. Capital Account – This account records the inflows and outflows of both short term as well as long term capital. In it capital inflows are recorded as credit and capital outflow are recorded as debit.
3. Reserve Account – It records any changes in foreign exchange reserves of the country. Any decrease in reserves is credited and increase in reserves is debited.