The balance of the share forfeiture account is shown in the balance sheet under the item:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Share capital
Until the forfeited shares are reissued, the balance of the Share Forfeiture Account is the money received on them. It is shown in the Notes to Accounts on Share Capital, added to the paid up capital under the head Share Capital.
NCERT (2026-27 edition):
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