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

Share Capital

The correct answer is option 1- Share Capital.

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

The Share Forfeiture Account represents the amount received on forfeited shares (i.e., the part of share capital already paid by shareholders whose shares were forfeited). This amount is not refunded, and it stays with the company. In the Balance Sheet, it is shown under the head: "Share Capital" – as an addition to paid-up capital.