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Share forfeiture account appears in a company’s balance sheet under the sub-head ______. - Accounts

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Question

Share forfeiture account appears in a company’s balance sheet under the sub-head ______.

Options

  • Share Capital

  • Reserve and Surplus

  • Other Long-term Liabilities

  • Other Current Liabilities

MCQ
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Solution

Share forfeiture account appears in a company’s balance sheet under the sub-head Share Capital.

Explanation:

The Share Forfeiture Account represents the amount received on shares that have been forfeited (i.e., cancelled due to non-payment of call money). This amount is not refunded to the shareholder and remains with the company.

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Chapter 9: Financial Statements of Companies - OBJECTIVE TYPE QUESTIONS [Page 9.71]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 9 Financial Statements of Companies
OBJECTIVE TYPE QUESTIONS | Q (A) 13. | Page 9.71
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