The process of using sales ledger balance to cancel off purchases ledger balance is

The process of using sales ledger balance to cancel off purchases ledger balance is

  • A.
    Balancing
  • B.
    Set off
  • C.
    Reconcilation
  • D.
    Cancelling
Correct Answer: Option B
Explanation

A set–off clause is a legal clause that gives a lender the authority to seize a debtor’s deposits when they default on a loan. A set–off clause can also refer to a settlement of mutual debt between a creditor and a debtor through offsetting transaction claims.

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