Import of Machinery is recorded in the ___________ Account and Borrowings from abroad is recorded in the _________ Account.
a) Current, Capital
b) Capital, Current
c) Capital, Capital
d) Current, Current
Anurag Pathak Changed status to publish August 26, 2021
Ans – a)
Import of Machinery is a visible trade and thus recorded in the current account.
On the other hand, borrowing is recorded in the capital account. It is a financial transaction that increases the financial liabilities of a country in foreign exchange.
Anurag Pathak Changed status to publish August 26, 2021