Accountancy Part BFinancial Statements of a Company

Balance of Share Forfeiture account is shown in the Balance Sheet und…

Balance of 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

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.”