The account which is not used in journal entry of the forfeiture of shares is:

Capital reserve account

The correct answer is option 2- Capital reserve account.

The account which is not used in journal entry of the forfeiture of shares is Capital reserve account as capital reserve account is used to transfer the balance of share forfeiture account after reissue of forfeited shares. It is not used in the journal entry for forfeiture of shares.

Forfeiture of Shares issued at Premium:
Share Capital A/c..........(Called up amount) Dr.
Securities premium A/c........(Premium amount) Dr.
     To Share Forfeiture A/c...........(Paid up amount)
     To Share Allotment A/c............(Amount not received)
     To Calls in arrears A/c.............. (Amount not received)
(Shares forfeited for non-payment of allotment money and calls made)