In match play, hitting your opponent's ball results in a loss of hole penalty. Player A loses the hole.
In medal or stroke play, Player A takes a two stroke penalty for hitting the wrong ball. Player A then takes another penalty for hitting his first ball in the water. If they deem Player A's ball as lost than stroke and distance in addition to the 2 stroke penalty. Player B then drops his ball as close as possible to where Player A had hit the wrong ball.
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