All of them are shown under the sub-heading 'Reserve and Surplus' except :
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Forfeited Shares
Under Schedule III the equity side of a company's balance sheet shows Share Capital and Reserves and Surplus as separate items. The amount received on forfeited shares (the amount originally paid up) is added to the paid-up capital in the Share Capital note, so it is not a reserve.
Option (1) Surplus ; Balance in Statement of Profit and Loss — Shown under Reserves and Surplus. The balance in the statement of profit and loss is the item “Surplus” of this head.
Option (2) Debenture Redemption Reserve — Shown under Reserves and Surplus. It is one of the reserves listed under this head.
Option (3) Forfeited Shares — Correct. Forfeited shares are shown in the Share Capital note, added to the subscribed capital.
Option (4) Revaluation Reserve — Shown under Reserves and Surplus. It is one of the reserves listed under this head.
NCERT (2026-27 edition):
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