Accountancy Part AAccounting for Shares

Balance of share forfeiture account is shown in the balance sheet und…

Balance of share forfeiture account is shown in the balance sheet under which item :

Answer & explanation

Correct answer: option 2

The correct answer is Option (2) → 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.”