BOP theory

CA. Goods

Debit(-): import of tangible goods
Credit(+): export of tangible goods

CA. Services

Debit(-): National residents receive services(hotel, restaurant, bar, etc.) from a foreign resident.
Credit(+): National resident offers services to foreign residents.

CA. Income/primary income

Debit(-): National resident pays interest, dividends to foreign resident
Credit(+):National residents receive interests, dividends from a foreign country

CA. Unilateral transfers/secondary income

Debit(-): National residents receive thx from a foreign resident for having sent remittances, gifts, donations to foreign resident
Credit(+): National resident sends thanks to a foreign resident for having received remittances, gifts, donations from foreign resident

capital account*

Debit(-):
Credit(+):

FA. FDI assets

Debit(-): National resident invests abroad, more than 10% of the capital of the total investment. Increases total investment abroad.
Credit(+): National resident sells or withdraws his investment abroad, reducing the balance of investment.

FA. FDI liabilities

Debit(-): Foreign resident sells or withdraws investment from local country, reducing balance of investment.
Credit(+): Foreign residents invest in the country, more than 10% of the capital of the total investment.

FA.Portfolio Investment Assets

Debit(-): National residents invest abroad, 10% or less than total capital of the investment; normally this is investment in shares or bonds. Increase in the amount of local resident portfolio investment abroad.
Credit(+): National resident sells or withdraws his investment abroad, reducing the balance of the investment abroad.

FA.Portfolio Investment Liabilities

Debit(-): Foreign resident sells or withdraws investment in local country, reducing balance of the foreign investment in the local country.
Credit(+): Foreign resident invests in the country, less than 10% of the total capital of the investment in stocks, or bonds. Increase in amount of portfolio investment.

FA. Derivatives (Assets & Liabilities)

Purchase or sale by the investor of derivatives abroad(futures, options)

FA.Other investment assets

Debit(-): National resident deposits money in the bank account abroad or lends money to a foreign resident.
Credit(+): National resident withdraws money from a bank account abroad or receives loan payment from a foreign resident.

FA. Other investment liabilities

Debit(-): Foreign resident withdraws money from a local bank account or receives a loan payment from a national resident.
Credit(+): Foreign resident deposits money in a local bank account or lends to a national resident.

Errors & Omissions

Debit(-): Accounting entry to balance the BOP, correct any errors and omissions.
Credit(+): Accounting entry to balance the BOP, correct any errors and omissions.

Official Reserves

Debit(-): Local country Central Bank acquires more reserves: foreign currency, metals or obligations of the other countries, thus increasing Reserves balance.
Credit(+): Local country Central Bank sells reserves or pays down obligations: foreign currency, metals or obligations of the other countries, thus decreasing Reserves balance