Question

balance in forfeited shere account is shown in the balance sheet under the head of
a. other current liability
b. reserve and surplus
c shere capital
d. long term borrowing​

Answer 1

Answer:

a

Explanation:

Share forfeited is shown under the head Reserves and surplus on the liability side of balance sheet.  Share forfeited is created when the company cancels the shares of a shareholder because of non payment of allotment or call money if so permitted by its articles. It is a capital gain for the company and hence will be shown in the reserves and surplus account.