Mr. Gandhi, who resides in Mumbai, posted pictures of his newly inaugurated factory in United States of America. The new factory will be recorded in which account of BOP?

Capital account

The correct answer is option 1: Capital account

Capital account of BOP records all the transactions between the residents of the country and the rest of the world which cause a change in assets and liabilities of the residents of the country or its government. There is an increase in the assets of Mr Gandhi, thus it will be recorded in the capital account of BOP.