WAEC Accounting 2015 Objective — Question 24

Question 24 of 50 from the West African Examinations Council (WAEC) Accounting 2015 Objective paper, with the correct answer and a full explanation.

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

A. Balancing
B. Set offCorrect
C. Reconciliation
D. Cancelling

Explanation

When a balance in the sales (debtors) ledger is used to cancel/offset a balance in the purchases (creditors) ledger for the same person, this is called a contra or set-off.

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