After sifting through all the responses, I believe the answer lies in that you have not recorded the sale of the partnership units correctly. Since you indicate approx $22,000, I believe this is throwing off the ability to correctly balance based on your facts.
When the S corp sold some of their interest in the partnership, there should have been an entry to the investment account; you no longer have $500,000 investment in that partnership. This is what is causing you to be out of balance.
Sale of part of your partnership investment entry:
Dr. Cash
Cr. Gain on sale
Cr. Investment in partnership
In my mind, you have not recorded this correctly as your investment account should no longer be the $500,000. After adjusting for this sale, you should be in balance.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
