In 1991, the BoP crisis had paved the way for much-needed and long-overdue reforms, the scope of which remains unmatched till today. The balance of payments, or BoP for short, records all the transactions, be they in goods, services or assets, of the concerned country with the rest of the world. All such transactions over a specified time period, usually a year, are kept track of in this way. This is also known as the balance of international payments. Think of it another way: It is a statement of all the economic transactions that a nation’s individuals, firms, and government enter into with individuals, firms, and governments outside the nation in question. The transactions in question include imports and exports of goods, services and financial assets, along with transfer payments. BoP allows one to monitor all international monetary transactions. In short, the aim is to determine how much money is going in and out of the country's economy. Knowing the strengths and weaknesses of the economy is the basic purpose of BoP accounting. One can determine the overall gains and losses from international trade by analysing the BoP accounts of the previous year. 

Rakesh went to Ukraine for pursuing his further studies. In which side of the BoP account will this transaction be recorded?

Debit side 

It will be recorded on the "Debit" side of the account because there is an outflow of money. Rakesh will pay his fees in foreign currency leading to an outflow of foreign exchange.