What is meant by balance of payment (BOP) account?
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What does BOP account record?
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Where are borrowings from abroad recorded and why
 

Balance of Payments account. BOP account of a country is systematic record of all economic transactions between residents of the domestic country and the residents of foreign countries during a given period of time. It is a complete statement of a country’s receipts and payments in foreign exchange arising from international transactions.
•    BOP account records a country's transactions in goods, services and assets with rest of the world during a given period.
•    BOP is the difference between a nation's total payment of foreign exchange to foreign countries and its total receipts from them.
•    Borrowing from abroad is a part of capital account of BOP account as it is a foreign liability.