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Balancing item is an accounting concept introduced to ensure that the balance of payment accounts. It represents the net total of errors and omissions in the other items in the balance of payments. The balancing item when added to the current account balance and the capital account balance would give a zero result. The balancing items indicate the application of the general accounting rules to the specific entries on the two sides of the account. Some of the examples of balancing items are value added, operating surplus, disposable income, saving, net lending or net borrowing, and net worth. The balancing items are laid down as both net and gross. They are net, if calculated after deduction of consumption of fixed capital and gross, if calculated before such deduction.