In: Economics
A - The balance of payment is the account of the receipt and payment which is made by the government. It is the record of all the transactions that take place with other economies . It is a T shaped account.
BOP has mainly two components which are
1 - Current account - This includes the import , export of goods and services and unilateral transfer.
2 - Capital accounts - This records the investments , borrowings etc.
The inflow is recorded on credit side and outflow on debit side.
Items such as export , receipt of foreign aid , receipt of interest on investment , borrowings done etc are the items which involve the inflow of money in economy. Hence these items are recorded on the credit side of BOP.