The correct answer is: A. calls-in-arrear of shares forfeited, amount received on shares forfeited.
When shares are forfeited, the share capital account is debited with the calls-in-arrear of shares forfeited. This is the amount that the shareholder has failed to pay on the shares. The share forfeiture account is credited with the amount received on shares forfeited. This is the amount that the company receives from the shareholder when the shares are forfeited.
The other options are incorrect because they do not reflect the correct accounting treatment of share forfeiture. Option B is incorrect because the called-up capital of shares forfeited is the amount that the shareholder has already paid on the shares. Option C is incorrect because the calls-in-arrear of shares forfeited is the amount that the shareholder has failed to pay on the shares. Option D is incorrect because the paid-up capital of shares forfeited is the amount that the shareholder has paid on the shares, including the calls-in-arrear.