In a company's Balance Sheet, the balance of the "Share Forfeiture Account" is presented under which main head/sub-item?
- ACurrent liabilities and provisions
- BShare Capital
- CReserves and surpluses
- DUnsecured loans
Solution & Step-by-step Explanation
According to Schedule III, the unissued balance remaining inside the Share Forfeiture Account represents money collected on shares that haven't been reissued yet. This amount must be disclosed by adding it directly to the "Subscribed Capital" line item under the main header Share Capital.