Under which of the following head/subhead is ‘Forfeited Shares’ presented in the Balance Sheet of a company?

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Solution

(A) Reserves and Surplus

(B) Share Capital

(C) Other Long-term Liabilities

(D) Other Current Liabilities

Answer: (A) Reserves and Surplus

Forfeited shares are shown under the heading of Reserve and Surplus on the liabilities side of the balance sheet.

Also read:

What Is Reserves

Difference Between Reserve and Provision

Difference Between Capital Reserve and Revenue Reserve

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