The new partner should have received the ending capital balance of the deceased partner as their beginning capital.
You can enter an adjustment on Form 1065 pg 5-6 Schedule M-2 Line 4 (increase) or Line 7 (decrease). You'll also need to specially allocate this adjustment to the old partner and the new.
Special Allocations are explained under the Business Info tab >> About Your Business > Makes special allocations. When you edit this statement, look for the "Explain this" link on the Special Allocations page. If you answer yes here, TurboTax will provide more information in the Partner/Member Information interview on the page "How to Enter Special Allocations."
This is a complex and tedious process. You may consider upgrading to TurboTax Live, an online service that provides step-by-step guidance from a tax expert whenever you need assistance, either over the phone or by screensharing.
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