To decrease the balance in the Creditor`s accounts, which of the following is correct?

Creditor`s account is credited

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Debtors account is credited

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Creditor`s account is debited

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Debtors account is debited

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Solution

The correct option is C
Creditor`s account is debited

Creditors i.e. Accounts Payable is a liability account. To decrease a liability account, you debit the account.

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