Naveen, Suresh and Tarun are partners sharing profits and losses in the ratio of 5:3:2. Suresh retires from the firm and his share was acquired by Naveen and Tarun in the ratio 2:1. The new profit sharing ratio is

7:3

The correct answer is option 2- 7:3.

Old ratio = 5:3:2 (Naveen, Suresh and Tarun)

Suresh retires
Gaining ratio = 2:1

Gained share of Naveen = 3/10 x 2/3
                                    = 6/30

Gained share of Tarun = 3/10 x 1/3
                                  = 3/30

New share = Old share + Gained share

New share of Naveen = 5/10 + 6/30
                                = (15+6)/30
                                 = 21/30

New share of Tarun = 2/10 + 3/30
                             = (6+3)/30
                             = 9/30

New ratio = 21/30 :9/30
               = 21:9
               = 7:3