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Are you saying sister has sent you this demand letter?
How do you document expenses when you have to spend money on the place? using checks from the account?
Ok, since you are not her employee, you have zero legal duty to provide that information without a court order demanding it. So her attorney's letter doesn't force you to do anything and if she has all the access to the bank account and can see what checks were written on it, then she can get her own records..
Even if she sued you, you would only have to provide what you have, not create documents..