From a pure "Generally Accepted Accounting Practices" (GAPP) standpoint, if you mark to market your investment portfolio, (a balance sheet asset), then the offset would typically be an accounting entry to the P&L titled "unrealized gain/(loss)" and that amount would settle out on the balance sheet in the entity's "equity" section. Assuming the partnership would not recognize unrealized gains and losses for tax purpose, i.e., the partnership is not a "trader' in the eyes of the IRS, then that unrealized gain or loss would show up as an adjustment in Schedule M-1 "Reconciliation of Income (Loss) per Books With Income (Loss) per Return"
Tom Young
