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.