Balance of share forfeiture account is shown in the balance sheet under the item:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Share capital
When shares are forfeited, the amount already received on them is kept by the company and credited to Share Forfeiture Account. Until those shares are reissued, this balance is added to the paid-up capital and shown under Share Capital in the notes to accounts, not as a reserve or a liability.
NCERT (2026-27 edition):
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