Company located in India received a loan from a company located abroad how is this transaction record Indian balance the payment account choose the correct alternative
- Credit side of current account
- Debit side of current account
- Credit side of capital account
- Debit side of capital account
Anurag Pathak Changed status to publish August 25, 2021
Ans – 3
The foreign exchange received in the form of loans from abroad is an inflow to India.
As this transaction is of financial nature and increases the financial liabilities of India, it is of a capital nature.
Thus it would be recorded at the credit side of the capital account of BoP.
Anurag Pathak Answered question August 25, 2021