Accountancy Part AAccounting for Shares

Under which sub-head in the balance sheet does the balance of share f…

Under which sub-head in the balance sheet does the balance of share forfeiture account appear?

Answer & explanation

Correct answer: option 1

The correct answer is Option (1) → 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.”