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

A.

Balancing

B.

Set off

C.

Reconciliation

D.

Cancelling

Correct answer is B

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.