The method of ascertaining capital from income record is by preparing the

The method of ascertaining capital from income record is by preparing the "Statement of Affairs". The statement of affairs is a financial statement that presents the assets and liabilities of a business or individual at a specific point in time. It is prepared to determine the amount of capital invested in the business, which is calculated by subtracting the total liabilities from the total assets. The statement of affairs is particularly useful when there is no accurate record of the capital that has been introduced or withdrawn from the business, or when the business is going through a period of transition. By preparing the statement of affairs, the owner or accountant can determine the true financial position of the business and make informed decisions about its future.