The starting point for the production of accounts from incomplete records is to

The starting point for the production of accounts from incomplete records is to prepare an opening statement of affairs. This is because incomplete records mean that not all financial transactions are recorded in the accounting system. Therefore, the opening statement of affairs is prepared to determine the opening capital, which includes the value of assets, liabilities, and capital at the beginning of the accounting period. This statement helps to establish a starting point for the preparation of financial statements and ensures that all financial transactions are accounted for in a systematic manner. Once the opening statement of affairs is prepared, it is possible to compute the profit or loss made during the period, by calculating the difference between the closing capital and the opening capital, and to prepare other financial statements like the balance sheet and profit and loss account.