Balance of Share Forfeiture A/c is shown in the Balance Sheet under the item

ExplanationCorrect Answer: (A) Share Capital Why Correct?

When shares are forfeited, the amount already received from shareholders is transferred to the Share Forfeiture Account.
In the Balance Sheet, this balance is shown under the head Share Capital, as:

Share Capital
Add: Forfeited Shares Account

Since this amount originally formed part of share capital, it is added under the Share Capital head.
Therefore, the correct answer is (A) Under Share Capital.

Why Other Options Are Incorrect?

(B) Current Liabilities and Provisions — Incorrect
Share forfeiture is not a liability of the company.

(C) Unsecured Loans — Incorrect
It is not a loan; it is related to shareholders’ capital.

(D) Reserves and Surplus — Incorrect
Only the surplus transferred after reissue of forfeited shares goes to Capital Reserve, not the forfeiture balance itself.