D and M Ltd. forfeited 5,000 shares of ₹10 each for non-payment of final call of ₹3/- per share. Out of these 2,000 shares were reissued @ ₹12/- per share as fully paid up. What is the maximum discount that can be allowed for re-issue of remaining 3,000 shares?

₹21,000

The correct answer is Option (3) → ₹21,000

On forfeiture of shares = 5000 x 7 = 35000 is received. This amount is forfeited by the company.
Journal entry on forfeiture is as follows-
Share Capital A/c Dr.    50000 (5000 x 10) called up amount
   To share forfeiture A/c      35000 (5000 x 7) received amount
   To share final call A/c       15000 (5000 x 3) Not received amount

₹35000 is related to 5000 shares. 2000 shares are already reissued at premium so the amount which is available for discount on 3000 shares is-
5000 shares = 35000
3000 shares = 35000/5000 x 3000
                  = ₹21000