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The term "set off" in control account is also called

Accounts - Principles of Accounts
JAMB 2024

The term "set off" in control account is also called

  • A. brought forward
  • B. contra entry
  • C. direct transfer
  • D. bad debt
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Correct Answer: Option B
Explanation

This refers to a single journal entry that records a transaction affecting two accounts with opposite balances. In control accounts, a "set off" achieves this by using a contra entry to reconcile the balances between a control account and its corresponding subsidiary ledger (e.g., sales ledger control account vs. individual customer accounts).


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