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Liability accounts normally has credit balance. When you settle the same, then it will have opposite account.
Credit>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>.
2. Credit
Liability accounts reflects the other resources provided by people or firms other than the owners of a business hence credit balance.
Liability has credit balance
Liability Accounts show outstanding.So It Must have Credit Balance.
The correct answer :2
Liability accounts normally have a credit balance .
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