Computing overall balance and its significance
Discuss how to compute overall balance and explain some of its significance.
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Overall BOP is estimated through computing the cumulative balance of payments involving the capital account, current account, and the statistical discrepancies. Overall BOP is quite considerable as it indicates international payment of the country gap which should be financed through the official reserve transactions of the government.
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At the end of March, 2006 the balances in the various accounts of TTTTT & Company are as follows: Rs. in million Accounts Balance Equity capital 120 Preference capital 30 Fixed assets (net) 217 Reserves and surplus 200 Cash
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