You have settled a debt or disagreement. Also, you have gotten permission.

Hi Nozturk, how are you? I have been coming here since December 2011. I am quite surprised to see your frequent questions. I have never seen so much consistency in learning something and I actually envy it. Keep going. Hope you reach your goal soon. Best of luck!

square it = even out the situation

To be "squared off" is to resolve a situation with someone. If I owe you $5, and I pay you the money, we're squared. Neither of us owe each other anything.