An offset-reducing output circuit of a source driver adapted to drive a liquid crystal device. The output circuit includes an operational amplifier having a non-inverting input to receive a reference voltage. The output circuit also includes input and output capacitors. One terminal of the input capacitor and one terminal of the output capacitor are connected to a node extending to an inverting input of the operational amplifier in at least a normal output operation mode. The output circuit also includes a switching circuit to short both terminals of the input capacitor and both terminals of the output capacitor in a reset operation so that the reference voltage is applied to the terminals of the input and output capacitors respectively. The switching device applies a gray scale voltage to an opposite terminal of the input capacitor in a normal operation mode.