The balance of Share Forfeiture account is shown as an addition to the total paid-up capital of the company. Under which head and title of the Balance Sheet it will be shown, until the forfeited shares are reissued?
A. 'Share Capital' under the title "Liabilities and Equity"
B. 'Reserve and Surplus' under the title "Liabilities and Equity"
C. 'Shareholders' Funds' under the title of "Equity and Liabilities"
D. 'Share Capital' under the title 'Equity and Liabilities'
Choose the correct answer from the options given below:
The balance of Share Forfeiture account is shown as an addition to the total paid-up capital of the company. Under which head and title of the Balance Sheet it will be shown, until the forfeited shares are reissued?
A. 'Share Capital' under the title "Liabilities and Equity"
B. 'Reserve and Surplus' under the title "Liabilities and Equity"
C. 'Shareholders' Funds' under the title of "Equity and Liabilities"
D. 'Share Capital' under the title 'Equity and Liabilities'
Choose the correct answer from the options given below:
Solution
Schedule III of the Companies Act, 2013 uses the title Equity and Liabilities, under which Shareholders' Funds appears, and within it Share Capital. The forfeited amount is added to subscribed capital there. Statements A and B use the incorrect title Liabilities and Equity, so only C and D are acceptable.
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