The balance of Share Forfeiture account is shown as an addition to the total paid-up capital of the company. Under which head and title of the Balance Sheet it will be shown, until the forfeited shares are reissued?

A. 'Share Capital' under the title "Liabilities and Equity"

B. 'Reserve and Surplus' under the title "Liabilities and Equity"

C. 'Shareholders' Funds' under the title of "Equity and Liabilities"

D. 'Share Capital' under the title 'Equity and Liabilities'

Choose the correct answer from the options given below:

C & D only

Correct answer: Option (4) → C & D only

Concept: Under Schedule III of the Companies Act, 2013 the company’s Balance Sheet uses the title “Equity and Liabilities”, and Share Capital sits under ‘Shareholders’ Funds’ – per Accounting for Share Capital.

The forfeited-shares amount is added to the paid-up capital and shown under ‘Share Capital’ within ‘Shareholders’ Funds’ under the title “Equity and Liabilities” – so statements C and D are correct. Statements A and B are wrong because the correct title is “Equity and Liabilities” (not “Liabilities and Equity”) and the item is not shown under Reserves & Surplus.