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

  • A Balancing
  • B Set off
  • C Reconcilation
  • D Cancelling

The correct answer is B. Set off

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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