A summary of J. R. R. Tolkien's "translation" methodology:
J. R. R. Tolkien was best known for his fantasy world - Middle-earth. He almost always presented his works as translated from ancient documents that somehow were passed down to him, e.g.
The Lord of the Rings translated from the Red Book of Westmarch by John Ronald Reuel Tolkien. Herein is set forth the history of the War of the Ring and the Return of the King as seen by the Hobbits.
-- from the title page of tLotR, in foreign letters.
While "translating" the Red Book, he of course had to "translate" the main language of narration (Westron, or Adûni in its own term) into English. But he also translated other languages that are closely related to Westron into languages that are related to English. For example, he translated the language of Rohan into Anglo-Saxon, and some others into Gothic, Old Norse, etc. Languages (Elvish, Dwarvish, etc.) that are mostly alien to Westron are only transcribed into Latin letters.
So far I believe there are real life translated books that do the same. I can imagine someone translating a Japanese novel into English, and the Old Chinese fragments in it into Latin, although I have never read one.
Tolkien went further to "translate" the names of races, characters and places into English(-ish), for example, the name Samwise is a "translation" of the "real" Westron name Banazîr, which means "Half-wise", and the nickname Sam from Ban. For names that can't be translated, because the meaning is obscure, such as Bilba, the ending -a (the usual masculine ending of real Hobbitish names) is altered to -o (Bilbo).
A better example would be the name Hobbit. It's a worn-out form in Hobbitish Westron related to Rohirric (Anglo-Saxon) Hol-bytla "Hole-builder" -- Hobbit is a translation of Kuduk, and Hol-bytla of Kûd-dûkan.
Tolkien invented these, I think, as an excuse to put English, and his favorite languages into the text, because as a philogist he couldn't allow these (relatively) modern names to exist in a prehistoric world unexplained. He didn't do so in his translation of Beowulf for example - he did not call Beowulf Beewolf.
So my question is: Are there real life translated books (novels, histories, whatever) that apply the same methodology? That is, the translator treats real-life source languages like Tolkien treated his fictional languages.