Old Profit Sharing Ratio:
Naveen : Suresh : Tarun = 5 : 3 : 2
Total parts = 5 + 3 + 2 = 10
Suresh's share = 103
When Suresh retires, his share of 103 is taken by Naveen and Tarun in the ratio 2:1.
Gain from Suresh's share:
Naveen's gain = 32×103=102
Tarun's gain = 31×103=101
New Profit Sharing Ratio:
Naveen's new share = Old share + Gain = 105+102=107
Tarun's new share = Old share + Gain = 102+101=103
Therefore, New ratio = 107:103 = 7 : 3