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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
Fill in the Blanks
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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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