When shares are forfeited, the share capital account is debited with . . . . . . . . and the share forfeiture accountis credited with . . . . . . . .

A. calls-in-arrear of shares forfeited, amount received on shares forfeited

B. called-up capital of shares forfeited, amount received on shares forfeited

C. called-up capital of shares forfeited, calls-in-arrear of shares forfeited

D. paid-up capital of shares forfeited, called-up capital of shares forfeited

Answer: Option B