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Question 3 The following depicts the Balance of Payments for Nicaragua for the year 2020, Debit) Net Account Credit (+) Merchandise Account 1000 2000 Services

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Question 3 The following depicts the Balance of Payments for Nicaragua for the year 2020, Debit) Net Account Credit (+) Merchandise Account 1000 2000 Services Account I 500 Income Account 600 2000 Unilateral Transfers Account Current Account Official Assets Account Private Assets 500 Account Financial and Capital 600 Account 1000 It is discovered two transactions have not been included in the balance of puyments. These are: 1). It was also discovered that "Print shop" a fim in Nicaragua imported T-shirts worth 400 from the USA. This was paid using a bank balance "Print shop" had in a bank in the USA 2). Also, the Nicaragua government purchased 700 of USA government bonds paying for it with bank balances held by the Nicaragua government in a bank in the USA. Required: a): Record transactions (1) and (2) in the balance of payments. Make sure to show both the credit and debit entries in the correct accounts [2 marks] b): Compute (1) the goods and services balance, and (ii) the current account balance [2 marks]

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