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In the buyer's records, trade credit appears as sundry creditors or:
AFixed deposits
BCapital reserve
CAccounts payable
DAccounts receivable
Answer & Solution
Correct answer: C. Accounts payable
1. The buyer owes the supplier.
2. It is a current liability.
3. So it shows as accounts payable.
_Source: NCERT Class 11 Business Studies, Chapter 8, Sources of Business Finance._
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