The balance of the share forfeiture account is shown in the balance sheet under the item:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Share capital
When shares are forfeited, the amount already received on them is credited to Share Forfeiture Account. Until those shares are reissued, this balance is added to the paid-up capital under the head Share Capital in the notes to accounts.
NCERT (2026-27 edition):
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