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
The balance in Share Forfeiture Account is the money received on shares that were forfeited and not yet reissued. It is not a profit until those shares are reissued, so it is added to the paid-up capital under Share Capital in the notes to accounts, not shown as a reserve or a liability.
NCERT (2026-27 edition):
|
