and what is the purpose of offseting, and why it is prohibited generally
give us more info, wolwol. what’s the context?
For example, you sell company product A on account, then you will have account receivable (asset). At mean time, you buy product B from the same company on account, then you will have account payable (liability). You cannot offset the asset and liablity and report only the net amount.
not combine two accounts into one, right?
Yes. You cannot combine those two accounts.