Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. using the double-entry accounting system, show how

Using the double-entry accounting system, show how the following transactions will generate credits and debits...

90.2K

Verified Solution

Question

Accounting

Using the double-entry accounting system, show how the following transactions will generate credits and debits in the Australian Balance of Payments (BoP) accounts. Please specify clearly which category (and sub-category) within the BoP accounts each credit or debit will appear. For example, a debit can appear in the Current Account, subcategory Goods.

(i) A citizen of Hong Kong undertakes a holiday in Australia and has dinner at a restaurant in Sydney. He pays for the meal using his credit card issued by a bank in Hong Kong.

(ii) An Australian citizen purchases a camera from a department store in Tokyo during his holiday trip in Japan, paying by using his credit card issued by ANZ bank in Australia.

(iii) An Australian company pays dividend income to a foreign investor by depositing money to the foreign investors account with a local bank in Australia.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students