Accountancy Part AAccounting for Shares

The balance of the Share Forfeiture Account will be shown in the Bala…

The balance of the Share Forfeiture Account will be shown in the Balance Sheet of the Company, under the head of:

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → Share Capital

NCERT (2026-27 edition):
Test your Understanding – II

Extract from the NCERT textbook

NCERT (2026-27 edition):
Forfeiture of Shares – “… The balance of shares forfeited account is shown as an addition to the total paid-up capital of the company under the head ‘Share Capital’ under title ‘Equity and Liabilities’ of the Balance Sheet till the forfeited shares are reissued.”