CREDITS and DEBITS in Balance OF PAYMENTS Accounting

In Keeping tract of year is international transaction for country ,the balance of payments accountant employs a variety of procedures .we do not need to wrong about all the details because we are seeking only a working Knowledge of the accounts for the purpose of interpreting and understanding broad economic trends ,events,and policies .Nevertheless , it is essential to understand the classification system of credits and debits . As a general working rule , CREDIT ITEMS IN THE BALANCE OF PAYMENTS ACCOUNT reflect transaction that give rise to payments inward to the home country . the major items are exports , foreign investment inflows to the home country , and receipts of interest and dividends by the home country from earlier investment abroad .by convention ,credit items (which give rise to a payment inflow) are recorded with a plus sign .DEBIT ITEMS IN THE BALANCE OF PAYMENTS ACCOUNTS reflect transaction that give rise to payment outward from the home country .The major items are important ,investments made in foreign countries by domestic nationals ,and payments of interest and dividends by the home country on earlier investments made in it by foreign investors . BY convention ,debit items (which lead to a payment outflow) are recorded with a minus sign