Question

Use the hypothetical information below to record the South African balance of payment transactions, using the double-entry bookkeeping procedure.

1. SA exports computers to the value of R500 to France, with payment to take place in 3 months.

2. SA imports good to the value of R400 from the UK, making immediate payment by buying pounds from a British bank.

3. You travel to the UK and spend R300.

4. SA gives aid to the value of R200 to another African country.

5. A South African citizen buys stock to the value of R100 from Belgium. He buys euros from a SA bank.

6. A British citizen buys SA government bonds to the value of R50. He buys rands from a SA bank.

Answer 1

Solution:

Account	Credit($)	Debit($)
Exports	500
Unilateral transfers		200
Imports		400
Financial flows,net	400
Tourist services		300
Balance	900	900

using the double-entry bookkeeping procedure The net capital credit balance of 400 is calculated as adding the eight capital entries (+300+400+200+100+50-500-100-50).