Balance of share forfeiture account is shown in the balance sheet under the sub-head-
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Share capital
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The Share Forfeiture Account represents the amount received from shareholders whose shares have been forfeited.
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This amount is not refundable, and hence it is shown as part of Shareholders’ Funds.
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Specifically, it is shown under the sub-head “Share Capital”.