542. Right of set-off.

Where before the commencement of the bankruptcy1 there have been mutual credits2, mutual debts3 or other mutual dealings4 between the bankrupt and any creditor of the bankrupt proving or claiming to prove for a bankruptcy debt5, an account must be taken of what is due from each party to the other in respect of mutual dealings and the sums due from one party must be set off against the sums due from the other6. Only the balance, if any, of the account so taken is provable as a bankruptcy debt or, as the case may be, is to be