A H

A HISTORY
I S T O R Y OF
OF

ACCOUNTING
A CCOUNTING AND
A N D ACCOUNTANTS
ACCOUNTANTS
GEORGE
G E O R G E WATSON
WATSON
1645-1723
16 45- 1 7"-3
A History of Accounting
A
and Accountants

EDITED
E AND
DITED A N D PPARTLY WRITTEN
ARTLY W R I T T E N BBY
Y

RICHARD
R ICHARD BROWN
BROWN

I~ ~~~;~~n~s~:up
New York London
 First published by
F R A N K CASS A N D C O M P A N Y L I M I T E D

This edition published 2013 by Routledge

711 Third Avenue, New York, NY 10017
2 Park Square, Milton Park, Abingdon, Oxon OX14 4RN

Routledge is an imprint o f the Taylor & Francis Group, an informa business

First edition 1905

New impression 1968

ISBN 7146 1279 0

 P A R T II.-HISTORY
PART OF
.—HISTORY O F ACCOUNTING
ACCOUNTING

I. N
I. NUMERATION.
UMERATION. By JJOHN
By S. M
O H N S. MACKAY, LL.D.
ACKAY, L L.D.

II. A
II. ANCIENT SYSTEMS
NCIENT S OFF A
YSTEMS O ACCOUNTING.
CCOUNTING. By
By
EDWARD BBOYD,
EDWARD O Y D , C.A.
C.A.

EARLY
III. E FORMS
ARLY F OFF A
ORMS O ACCOUNTS.
CCOUNTS. By EDWARD
By EDWARD
BOYD,
B O Y D , C.A.
C.A.

IV. HISTORY
IV. H OF
ISTORY O AUDITING.
FA UDITING. By EDWARD
By EDWARD BBOYD,
O Y D , C.A.
V. H
V. HISTORY
ISTORY OFF B
O BOOK-KEEPING.
OOK-KEEPING. By J
By J. . Row
Row
FOGo, C.A.
FOGO, C.A.

VI. HISTORY
VI. H OFF B
ISTORY O BOOK-KEEPING
O O K - K E E P I N G {Continued). By
(Continued). By
JJ.. Row
Row FOGO,
FOGo, C.A.
C.A.

P A R T III.-i-HISTORY
PART OF
I.-T-HISTORY O F ACCOUNTANTS
ACCOUNTANTS

EARLY
I. E A R L Y IITALIAN ACCOUNTANTS.
TALIAN A CCOUNTANTS. By EDWARD
By EDWARD
BOYD,
B O Y D , C.A.
C.A.

SCOTLAND
II. S COTLAND BEFORE
B E F O R E THE CHARTERS.
THE C HARTERS. By
By
the EDITOR,
the EDITOR, incorporating Notes by
incorporating Notes by ALEXANDER
SLOAN,
SLOAN, C.A. C.A.

III. SCOTTISH
S C O T T I S H CHARTERED
C H A R T E R E D ACCOUNTANTS.
A C C O U N T A N T S . By By
the EDITOR,
EDITOR, incorporating Notes Notes by by ALEXANDER
ALEXANDER
SLOAN,
SLOAN, C.A. C.A.
IV. ENGLAND
E N G L A N D AND A N D IRELAND.
IRELAND. By the
By the EDITOR,
incorporating Notes by by T. T. AA.. ONIONS
ONIONS andand JAMES
MARTIN,
M A R T I N , F.S.A.A.
F.S.A.A.
V.
V. THE
T H E BRITISH
B R I T I S H COLONIES,
C O L O N I E S , ETC. By the
E T C . By the EDITOR.
VI. THE
T H E UNITED
U N I T E D STATES
S T A T E S OF O F AMERICA.
AMERICA. By the
the
EDITOR.
EDITOR.
VII. THE
T H E CONTINENT
C O N T I N E N T OF O F EUROPE.
E U R O P E . By the EDITOR.
O T H E R FOREIGN
VIII. OTHER F O R E I G N COUNTRIES.
C O U N T R I E S . By the EDITOR.
IX. DEVELOPMENT
IX. D E V E L O P M E N T OF O F THET H E PROFESSION.
P R O F E S S I O N . By
By
JOSEPH
JOSEPH PATRICK,
PATRICK, M.A.,
M . A . , C.A.
C.A.

X . THE
X. T H E POSITION
POSITION AND A N D PROSPECT.
P R O S P E C T . By the EDITOR.
EDITOR.
B I B L I O G R A P H Y OF
BIBLIOGRAPHY O F BOOK-KEEPING.
BOOK-KEEPING. Com-
Com-
piled by by the EDITOR.
EDITOR.
LISTS OF
LISTS O F DECEASED
D E C E A S E D SCOTTISH
S C O T T I S H ACCOUNT-
ACCOUNT-
A N T S . Compiled by the EDITOR and
ANTS. and ALEXANDER
ALEXANDER
SLOAN,
SLOAN, C.A. C.A.
This page intentionally left blank
 PREFA.CE
P REFACE

TTHE occurrence of
H E occurrence of the
the Fiftieth
Fiftieth Anniversary
Anniversary of of the
the incor-
poration of
poration of Accountants
Accountants iin Scotland-in which
n Scotland—in which country
country the
Chartered
Chartered Accountant
Accountant firstfirst saw
saw thethe light — - suggested
suggested the
propriety
propriety of of writing
writing an account
account of of the
the origin and growth of
growth of
the profession
the profession while it was was still
still possible
possible to to ascertain the
facts and describe
facts describe the
the circumstances
circumstances with with some degree of of
fulness. The 1'he idea having been been heartily approved
approved of of by
by the
Scottish
Scottish Societies
Societies ofof Accountants, the project project soon expanded,
and it was decided
decided toto include a history of of Accounts, Audit-
Accounts, Audit-
ing, and Book-keeping; in short, to to treat of Accounting—
of Accounting-
as well as Accountants—from
Accountants-from the historic standpoint.
So ambitious a scheme could not well have been been carried
out singly by anyoneany one whowho had at the same time to attend
to the daily demandsdemands of of a somewhat
somewhat exacting profession,
profession,
division of
but, by the division of labour shown on the sub-title page, page,
projected has now been completed,
the work projected completed, and the volume,
volume,
such as it is, is, is ready for publication within a short time
of the events which it was intended to commemorate.
of commemorate.
The reader is is asked to bear in in mind that the writers
this book are men engaged
of this engaged in in active business, who have have
little time to cultivate
cultivate literary
literary accomplishments, but who who
have endeavoured
endeavoured to compose
compose aa full and and faithful history ofof
an
an important
important profession and and ofof the things which pertainpertain to
to
it,
it, believing
believing that
that inin so doing
doing they are are rendering
rendering aa service
service
to
to that
that profession as as well
well asas adding
adding something,
something, however
however
little, to
little, to the
the sum
sum total
total ofof useful
useful historical
historical research.
research.
To
T o the history proper there have been added
the history proper there have been added several
several
appendices: First, aa bibliography
appendices: First, bibliography of of all
all printed
printed books
books onon
vii
vii
viii
Vlll PREFACE
PREFACE

book-keeping
book-keeping in European languages languages up to the year 1800 1800
which the Editor has been able to authenticate; Second, Second, a
record ofof past Accountants in Scotland useful for purposes purposes
of reference, .and
of reference, «and Third, accounts
accounts of meetings held in
of the meetings
Edinburgh and Glasgow to celebrate celebrate the FiftiethFiftieth Anniver-
Anniver-
of the Incorporation of
saries of Societies there, which, if
of the Societies if
not perhaps of of much general interest, are of of special import-
ance to the not inconsiderable body of of Scottish Chartered
Accountants.
The Editor makes grateful acknowledgment acknowledgment to his
fellow-workers not only for their hearty co-operation co-operation as
regards the special portions of of the volume undertaken by
them, but for valuable help in other ways; particularly particularly to
Mr.
M r , Boyd, for compiling the Index, and M Mr.r . Patrick, for for
reading the proofs. For F o r the information collected collected in the
later chapters of of the book he is indebted to British Ministers Ministers
and
and Consular representatives in foreign countries, to to the
Presidents and Secretaries of of the various SocietiesSocieties of of Ac-
Ac-
countants referred to, and to other Accountants Accountants resident iin n
different parts of of the world. It It would be be impossible to
mention so many by name, but to all of them the Editor
all of
tenders his sincere thanks for their invariable courtesy courtesy and
willing response to his sometimes sometimes troublesome inquiries.
troublesome inquiries.
T o the following also his best thanks are ggiven
To i v e n:-Mr.
: — M r . W.
W.
H. Hamilton, W.S.,
H . Hamilton, W . S . , Edinburgh;
Edinburgh; Lieut. Robertson, No. 6
(Accountants)
(Accountants) Company, Q.R. . B . , R.S.;
Q . R . VV.B., R.S.; M Mr.r . Horatio F. F.
Brown, LL.D.,
L L . D . , Venice; M. M . Gabriel
Gabriel Faure,Faure, Paris; M M.. Pana-
yotopoulo, Greece;
Greece; and Mr. M r . J.
J. N N.. Hayward,
Hayward, Shanghai; as
well as to those others whose kindness, whether in the way
of
of furnishing
furnishing information or permitting illustrations illustrations to to be be
reproduced, has been referred to in i n the text.

Edinburgh, 1905
1905
 CONTENTS
CONTENTS

PART
P A R T II
HISTORY
H ISTORY OF
O F ACCOUNTING
ACCOUNTING

CHAPTER
C HAPTER I

NUMERATION
N UMERATION

PRIMITIVE,
PRIMITIVE, GREEK, ROMAN, MODERN
MODERN • . 83

CHAPTER
C H A P T E R II
II

ANCIENT
A N C I E N T SYSTEMS OF
SYSTEMS O F ACCOUNTING
ACCOUNTING

BABYLONIAN AND
BABYLONIAN ASSYRIAN—EGYPTIAN—JEWISH GRECIAN—ROMAN—UNDER
ASSYRIAN-EGYPTIAN-JEWISH-GRECIAN-ROMAN-UNDER
T H E EMPEROR CHARLEMAGNE
THE . . . . . . . . 16
l6

CHAPTER
C HAPTER III
III

EARLY
E A R L Y FORMS
F O R M S OF
O F ACCOUNTS
ACCOUNTS

ENGLISH EXCHEQUER PIPE

EXCHEQUER-PIPE ROLLS SCOTTISH
ROLLS-SCOTTISH EXCHEQUER SCOTTISH
EXCHEQUER-SCOTTISH BURGH
ACCOUNTS
ACCOUNTS AUDITED TN EXCHEQUER HOUSEHOLD ACCOUNTS
EXCHEQUER-HOUSEHOLD ACCOUNTS OF ELEANOR,
COUNTESS OF LEICESTER-ACCOUNTS
LEICESTER ACCOUNTS OF THE
T H E EXECUTORS OF T H E CON-
THE
SORT OF EDWARD
SORT I. ;
EDWARD I.; T H E ROYAL
OF THE ROYAL WARDROBE
WARDROBE;; OF ENGLISH MANORS
EVOLUTION
-EVOLUTION OF THE
THE MONEY
MONEY COLUMN ACCOUNTS
COLUMN-ACCOUNTS OF T HE
THE CITY
CITY OF
LONDON ;
LONDON; OF THE
T H E LIVERY
LIVERY COMPANIES
COMPANIES OF LONDON CHARGE AND DIS-
LONDON-CHARGE
CHARGE FORM ACCOUNTS OF T
FORM-ACCOUNTS H E LORD HIGH TREASURER OF SCOTLAND
THE
ACCOUNTS OF THE
-ACCOUNTS T H E CITIES OF ABERDEEN, EDINBURGH, GLASGOW, DUBLIN
EDINBURGH, GLASGOW,
ARABIC NUMERALS
-ARABIC ACCOUNTS OF THE
NUMERALS-ACCOUNTS T H E HOUSEHOLD EXPENSES OF T HE
THE
PRINCESS ELIZABETH ; OF THE
PRINCESS ELIZABETH; T H E CHURCHWARDENS
CHURCHWARDENS OF LUDLOW-THANE
LUDLOW T H A N E OF
CAWDOR KING'S COLLEGE, ABERDEEN—MERCHANTS*
CAWDOR-KING'S ABERDEEN-MERCHANTS' HOUSE OF GLASGOW
GLASGOW
BURGH OF STIRLING
-BURGH SCOTTISH FORFEITED ESTATES
STIRLING-SCOTTISH ESTATES.. . . . 4411
ix
ix
xX CONTENTS
CONTENTS

CHAPTER
C H A P T E R IV
IV

HISTORY
H I S T O R Y OF
O F AUDITING
AUDITING
USE AMONG ANCIENT PEOPLES-EXCHEQUER
CHECKS IN USE PEOPLES EXCHEQUER AUDITING-AUDITING
AUDITING AUDITING
T H E ACCOUNTS OF ENGLISH MANORS-MUNICIPALITIES-LIVERY
OF THE MANORS—MUNICIPALITIES—LIVERY COM-
LONDON PRIVATE INDIVIDUALS-PAROCHIAL
PANIES OF LONDON-PRIVATE INDIVIDUALS—PAROCHIAL AUTHORITIES
AUTHORITIES . 74
74

CHAPTER
CHAPTER V
V

HISTORY
H I S T O R Y OF BOOK-KEEPING
OF B OOK-KEEPING
T H E OLDEST PRESERVED
THE PRESERVED ACCOUNT-BOOK-OTHER
ACCOUNT-BOOK—OTHER EARLY ACCOUNT-BOOKS
ACCOUNT-BOOKS OF
T H E THIRTEENTH AND FOURTEENTH
THE FOURTEENTH CENTURIES-THE
CENTURIES T H E DEVELOPMENT
DEVELOPMENT OF
BOOK-KEEPING T H E EARLIEST INSTANCES OF DOUBLE-ENTRY-THE
BOOK-KEEPING-THE DOUBLE-ENTRY T H E FIRST
FIRST
BOOK-KEEPING—DESCRIPTION OF T
PRINTED TREATISE ON BOOK-KEEPING-DESCRIPTION H E WORK OF
THE
PACIOLO T H E INFLUENCE OF PACIOLO ON SUBSEQUENT AUTHORS
PACIOLO-THE THE
AUTHORS-THE
EARLIEST TREATISES IN GERMAN, DUTCH, ENGLISH, FRENCH,
FRENCH, AND
AND
SPANISH
SPANISH • 98
93

CHAPTER
C H A P T E R VI
VI

HISTORY
H I S T O R Y OF
OF BOOK-KEEPING-(Continued)
BOOK-KEEPING-~(Con^erf)
GRADUAL IMPROVEMENTS
IMPROVEMENTS UPON THE
THE EARLY ITALIAN
ITALIAN METHODS PETRI
METHODS-PETRI-
PIETRA
PIETRA - PASSCHIER-GOESSENS
PASSCHIER-GOESSENS - SIMON
SIMON STEVIN - T HE
THE SCHOOL-MASTER
SCHOOL-MASTER
AUTHORS ENGLISH
AUTHORs-ENGLISH AUTHORS
AUTHORS:: IN T H E SIXTEENTH
THE SIXTEENTH AND
AND SEVENTEENTH
SEVENTEENTH
CENTURIES-PEELE, MELLIS, CARPENTER,
CENTURIES—PEELE, D A F F O R N E — T H E FIRST
DAFFORNE-THE FIRST SCOT-
TISH AUTHOR
AUTHOR —
- EXERCISE BOOKS
BOOKS OF GEORGE WATSON
WATSON - BOOKS
BOOKS OF T HE
THE
DARIEN
DARIEN SCHEME " JONES*
SCHEME - " JONES' ENGLISH SYSTEM OF BOOK-KEEPING "
MODERN DEVELOPMENTS . . . 1184
34

PART II
P A R T
II

HISTORY
H ISTORY OF
O F ACCOUNTANTS
ACCOUNTANTS

CHAPTER
C HAPTER II
EARLY
E A R L Y IITALIAN
T A L I A N ACCOUNTANTS
ACCOUNTANTS
IN
IN T H E COMMUNES
THE COMMUNES AND
AND MARITIME
MARITIME REPUBLICS—FIRST
REPUBLICS-FIRST ASSOCIATION
ASSOCIATION OF AC-
COUNTANTS
COUNTANTS AT
AT VENICE QUALIFICATIONS
VENICE--QUALIFICATIONS FOR
FOR ADMISSION ASSOCIATION
ADMISSION-ASSOCIATION
AT
AT MILAN SCALE OF CHARGES PRESCRIBED
MILAN-SCALE ACADEMY AT
PRESCRIBED-ACADEMY AT BOLOGNA
BOLOGNA-
VICISSITUDES
VICISSITUDES OF T H E OLD ASSOCIATIONS—LAWS
THE ASSOCIATIONS-LAWS RELATING TO
TO ACCOUNTANTS
ACCOUNTANTS 178
173
 CONTENTS
C ONTENTS xxii

CHAPTER
C HAPTER II
II

SCOTLAND-BEFORE
S THE
COTLAND—BEFORE T H E CHARTERS
CHARTERS

TTHE
H E ORIGIN
ORIGIN OF
OF T H E PROFESSION
THE PROFESSION IN
IN EDINBURGH EARLY ASSOCIATION
EDINBURGH-EARLY ASSOCIATION WITH
WITH
LEGAL PROFESSION
LEGAL PROFESSION-SOME PROMINENT ACCOUNTANTS
SOME PROMINENT ACCOUNTANTS OF
OF T
THE EIGHTEENTH
H E EIGHTEENTH
CENTURY ANECDOTES OF
CENTURY-ANECDOTES JAMES BALFOUR THE
BALFOUR-THE FOUNDERS
FOUNDERS OF TTHE
HE
SCOTTISH
SCOTTISH LIFE ASSURANCE
LIFE ASSURANCE SOCIETIES
SOCIETIES-LETTER SIR WALTER
LETTER OF SIR WALTER SCOTT
SCOTT
RELATING
RELATING TO
TO T H E PROFESSION
THE EARLY GLASGOW
PROFESSION-EARLY GLASGOW ACCOUNTANTS LARGE
ACCOUNTANTS-LARGE
IN LATTER PART
BANKRUPTCIES IN PART OF EIGHTEENTH CENTURY
CENTURY-ACCOUNT-
ACCOUNT-
ANT
ANT FIRMS T H E N ESTABLISHED
THEN AN EARLY STATEMENT OF T
ESTABLISHED-AN H E SCOPE
THE SCOPE
OF T H E PROFESSION IN
THE IN GLASGOW EARLY ACCOUNTANTS
GLASGOW-EARLY ACCOUNTANTS IN
IN ABERDEEN,
ABERDEEN,
DUNDEE, ETC
DUNDEE, ETC. • 181
181

CHAPTER
C H A P T E R III
III

SCOTTISH
S C O T T I S H CHARTERED
C H A R T E R E D ACCOUNTANTS
ACCOUNTANTS

FORMATION OF THE
T HE EDINBURGH SOCIETY
SOCIETY - INCORPORATION
INCORPORATION BY
BY ROYAL
CHARTER FORMATION
CHARTER-FORMATION OF THE
THE GLASGOW
GLASGOW INSTITUTE AND
INSTITUTE INCORPORA-
INCORPORA-
TION BY ROYAL CHARTER—EXAMINATION
CHARTER-EXAMINATION OF CANDIDATES GENERAL
CANDIDATES-GENERAL
EXAMINING
EXAMINING BOARD ADOPTION
BOARD-A~OPTION OF PROFESSIONAL TITLE AND LETTERS
LETTERS
C.A. INTEREST OF THE
C.A.-INTEREST T H E SOCIETIES IN PUBLIC AFFAIRS-LEGISLATION
AFFAIRS LEGISLATION FOR
ACCOUNTANTS-LECTURES-PUBLICATIONS-MEMBERSHIP-QUALIFICATIONS
ACCOUNTANTS—LECTURES PUBLICATIONS MEMBERSHIP QUALIFICATIONS
FOR ADMISSION-HALL
ADMISSION HALL AND LIBRARY
LIBRARY OF THE
T H E EDINBURGH SOCIETY-
SOCIETY
EVENING CLASSES-ENDOWMENT
CLASSES ENDOWMENT AND ANNUITY
ANNUITY FUND-THE
FUND T H E ACCOUNT-
ANTS'
ANTS* COMPANY VOLUNTEER
VOLUNTEER BRIGADE-8TUDENTS'
BRIGADE STUDENTS* SOCIETY-DECEASED
SOCIETY DECEASED
PRESIDENTS-HALL
PRESIDENTS' HALL AND LIBRARY
LIBRARY OF THE
T H E GLASGOW
GLASGOW INSTITUTE-CLASSES
INSTITUTE CLASSES
- STUDENTS' SOCIETY - SOCIAL FUNCTIONS - DECEASED PRESIDENTS-
DECEASED PRESIDENTS
SHARE IN VOLUNTEER
VOLUNTEER MOVEMENT-INCORPORATION
MOVEMENT INCORPORATION OF ABERDEEN
ABERDEEN SO-
SO-
CIETY-8TUDENTS'
CIETY STUDENTS* SOCIETY-WIDOWS'
SOCIETY WIDOWS* FUND . . . . . 208
203

CHAPTER
C H A P T E R IV
IV

ENGLAND
E N G L A N D AND
A N D IRELAND
IRELAND

EARLY
EARLY ACCOUNTANTS IN
IN ENGLAND AND
ENGLAND AND WALES-GROWTH
WALES GROWTH IN
IN NINETEENTH
NINETEENTH
CENTURY-FORMATION
CENTURY FORMATION OF
OF FIRST
FIRST SOCIETIES-INSTITUTE
SOCIETIES INSTITUTE OF CHARTERED
OF CHARTERED
ACCOUNTANTS IN
IN ENGLAND
ENGLAND AND
AND WALES-80CIETY
WALES SOCIETY OF
OF ACCOUNTANTS
ACCOUNTANTS AND
AND
AUDITORS T H E PROFESSION
AUDITORS-THE PROFESSION IN
IN IRELAND INSTITUTE OF
IRELAND-INSTITUTE OF CHARTERED
CHARTERED
ACCOUNTANTS IN
ACCOUNTANTS IN IRELAND-ISLE
IRELAND I8LE OF
OF MAN
MAN AND
AND CHANNEL
CHANNEL ISLANDS
ISLANDS •. . 282
232
xii
XlI CONTENTS
CONTENTS

CHAPTER
C V
HAPTER V

TTHE BRITISH
HE B COLONIES,
RITISH C O L O N I E S , EETC.
TC.

SOCIETIES FORMED
SOCIETIES FORMED IN
IN MONTREAL,
MONTREAL, TORONTO,
TORON'l'O, NOVA
NOVA SCOTIA,
SCOTIA, MANITOBA,
MANITOBA, AND
AND
BRITISH COLUMBIA
BRITISH INSTITUTES IN
COLUMBIA-INSTITUTES IN AUSTRALASIA UNIFORM EXAMINA-
AUSTRALASIA-UNIFORJI EXAIIINA-
TIONS MOVEMENT FOR
TIONS-MOVEMENT FOR AMALGAMATION OTHER SOCIETIES
AMALGAJlATION-OTHER SOCIETIES IN
IN AUSTRALIA
AUSTRALIA
AND NEW ZEALAND—INSTITUTES
AND NEW ZEALAND-INSTITUTES IN
IN NATAL
NATAL AND
AND SOUTH
SOUTH AFRICAN
AFRICAN R
RIl-
E-
PUBLIC SITUATION
PUBLIc-8ITUATION IN
IN T HE
THE TRANSVAAL—ORDINANCE
TRANSVAAL-ORDINANCE OF LEGISLATIVE
LEGISLATIVE
COUNCIL-CAPE
COUNCIL—CAPE COLONY-INDIA-CEYLON-HONG
COLONY INDIA CEYLON HONG KONG-SINGAPORE-
KONG SINGAPORE
EGYPT
EGYPT 258
253

CHAPTER
C H A P T E R VI
VI

THE
T UNITED
HE U STATES
NITED S OF
TATES O F AMERICA
AMERICA

THE
T HE PROFESSION ONLY
ONLY RECOGNISED RECENTLY -
RECENTLY THE
T HE FIRST
FIRST SOCIETY
SOCIETY OF
PUBLIC ACCOUNTANTS T H E MOVEMENT
ACCOUNTANTS-THE JlOVEMENT FOR STATE LEGISLATION THE
LEGISLATION-THE
FIRST C
FIRST C.P.A. LAW-BIMILAR
P . A . LAW SIMILAR LAWS IN OTHER STATES-SUBJECTS
STATES—SUBJECTS OF EXA-
JlINATION-DIFFERENCE
MINATION DIFFERENCE BETWEEN AMERICAN AND BRITISH SYSTEMS
SYSTEJlS-
EXISTING SOCIETIES OF ACCOUNTANTS IN T
EXISTING THE
H E STATES-FEDERATION
STATES FEDERATION OF
SOCIETIES CONGRESS AT ST. LOUIS
SOCIETIES-CONGRESS CONDITIONS OF PRACTICE IN T
LOUIS-CONDITIONS HE
THE
UNITED STATES-THE
STATES T H E PROFESSION IN CUBA.
CUBA 27l
271

CHAPTER
C H A P T E R VII
VII

THE
T H E CONTINENT
C O N T I N E N T OF EUROPE
OF E UROPE

NUMEROUS SOCIETIES IN ITALY -— SPHERE

SPHERE OF THE
T H E ACCOUNTANT THERE-
THERE
PERIODICAL CONGRESSES-PROPOSED
CONGRESSES PROPOSED LAW
LAW AS TO ACCOUNTANT8-8OCIIl-
ACCOUNTANTS SOCIE-
TIES IN HOLLAND, SWEDEN, AND
HOLLAND, BELGIUM — SITUATION
BELGIUJI- SITUATION IN FRANCE,
SPAIN, GERMANY, RUSSIA, AND THE
THE OTHER EUROPEAN
EUROPEAN COUNTRIES,
COUNTRIES,
INFORMATION AS TO THE
WITH INFORMATION T H E LAW AND PRACTICE
PRACTICE IN JlATTERS
MATTERS OF
ACCOUNTING • 281
281

CHAPTER
C H A P T E R VIII
VIII

OTHER
O T H E R FOREIGN
F O R E I G N COUNTRIES
COUNTRIES

SOCIETIES IN
SOCIETIES IN ARGENTINA,
ARGENTINA, URUGUAY,
URUGUAY, AND
AND PERU -
PERU SITUATION
SITUATION IN
IN BRAZIL,
BRAZIL,
CHILE,
CHILE, CENTRAL
CENTRAL AJlERICA,
AMERICA, JlUICO,
MEXICO, AND
AND OTHER
OTHER COUNTRIEB--PRACTICE
COUNTRIES—PRACTICE
IN
IN CHINA
CHINA AND
AND JAPAN-.JAPANESE
JAPAN—JAPANESE COJ(J(ERCIAL
COMMERCIAL CODE
CODE AS
AS TO
TO ACCOUNTS
ACCOUNTS
AND BALAJlfCJ:-8HEETS
AND BALANCE-SHEETS • 802
302
 CONTENTS
CONTENTS xiii
Xlll

CHAPTER
C H A P T E R IX
I X

D E V E L O P M E N T OF
DEVELOPMENT O F THE
T H E PROFESSION
PROFESSION

NATURE OF BUSINESS
BUSINESS FIFTY YEARS AGO AND AT THE
T H E PRESENT DAY
DAY COM-
PARED DEVELOPMENT OF AUDITING
PARED-DEVELOPMENT JOINT-STOCK COMPANY LEGISLATION
AUDITING-JOINT-STOCK
LOCAL AUTHORITIES*
-LOCAL ACCOUNTS BANKRUPTCIES AND
AUTHORITIES' ACCOUNTS-BANKRUPTCIES LIQUIDATIONS
LIQUIDATIONS-
T HE
THE TEACHING OF BOOK-KEEPING JUDICIAL
BOOK-KEEPING-JUDICIAL FACTORIES GROWTH
FACTORIES-GROWTH OF
THE
T H E SOCIETIES-IS
SOCIETIES THE
IS T H E PROFESSION OVERSTOCKED? . . . . 3314
1 4

CHAPTER
C H A R T E R XX
T H E
THE P OSITION
POSITION A N D
AND PROSPECT
PROSPECT

NUMBER OF PROFESSIONAL ACCOUNTANTS DIFFERENT COUNTRIES COMPARED

ACCOUNTANTS-DIFFERENT
FORMATION OF RIVAL SOCIETIES-DESIRE
-FORMATION SOCIETIES DESIRE FOR LEGISLATIVE CONTROL
DANGERS TO BE GUARDED AGAINST—FUTURE
--DANGERS AGAINST-FUTURE DEVELOPMENT
DEVELOPMENT . . 884
334

APPENDICES
APPENDICES

I.
I. BIBLIOGRAPHY
BIBLIOGRAPHY OF B OOK-KEEPING
BOOK-KEEPING 348
343

II.
II. LISTS DECEASED SCOTTISH ACCOUNTANTS, WITH N
LISTS OF DECEASED OTES
NOTES . • 861
361

III.
III. F I F T I E T H ANNIVERSARY
FIFTIETH ANNIVERSARY OF INCORPORATION-
INCORPORATION—
1.
1. T H E SOCIETY
THE SOCIETY OF ACCOUNTANTS IN EDINBURGH . . . 4401
0 1

2. THE
2. T H E INSTITUTE
INSTITUTE OF ACCOUNTANTS AND ACTUARIES IN GLASGOW
GLASGOW 430
430

INDEX
INDEX 458
453
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 LIST
L OFF ILLUSTRATIONS
IST O ILLUSTRATIONS

PORTRAIT OF
PORTRAIT OF G
GEORGE WATSON,
EORGE W A T S O N , 11645-1723
645-1723 . . . . Frontispiece
Frontispiece
PICTURE IN
PICTURE IN TTHE
H E TTOMB OF CHNEMHOTEP
O M B OP CHNEMHI)TEP Page
Page 222
2
ACCOUNT
ACCOUNT OF DISBURSEMENTS
OF DISBURSEMENTS OF T
OF THE ATHENIAN
HE A THENIAN STATE,
STATE,
1 8 B.C.
4418 B.C. TO
TO 4 1 5 B.C
415 B.C •• To face page
Toface page 226
6
ACCOUNTS
ACCOUNTS OF T
OF THE BURGH
HE B URGH OF STIRLING,
OF STIRLING, AUDITED
A UDITED 25TH
25TH
JJANUARY 1327-1328
ANUARY 1 327-1328 • „ „ 4
466
PORTION OF
PORTION OF ACCOUNT
ACCOUNT OF
OF TTHE ROYAL
HE R WARDROBE, 1299-1300
O Y A L WARDROBE, 1299-1300 "
.
"
Page
Page 51
51
ACCOUNT
A OF T
C C O U N T OF THE CHAMBERLAIN O
H E CHAMBERLAIN OFF T
THE CITY
HEC OF LoNDON,
I T Y OF LONDON,
1334
1334 • To face
face page
page 554
4
UPPER
U PORTION OF
P P E R PORTION OF P
PAGE 98
AGE 9 OF SORANZO'S L
8 OF LEDGER, 1422
EDGER, 1 422 „ „ 1 00
100
UPPER
U PORTION OF
P P E R PORTION OF P
PAGE 100
AGE 1 OF SORANZO'S L
0 0 OF LEDGER, 1422
EDGER, 1 422
"
„ „
" 1 04
104
TITLE PAGE
TITLE P A G E OF
OF PACIOLO,
PACIOLO, 1528
1 5 2 3 EDITION . . .
"
„
"„ 1 08
108
FIRST
FIRST PAGE
P A G E OF
OF PACIOLO'S "DE
" D E COMPUTIS
COMPUTIS ET
E T SCRIPTURIS,"
" "
1494
1494 EDITION
EDITION Page 1no
Page 10
LEDGER
L E D G E R OF
OF "DARIEN"
" D A R I E N " COMPANY,
COMPANY, 1697
1697 . . . . To
T o face page 114
114
LAST
L A S T PAGE
P A G E OF
OF MANZONI'S
MANZONI'S JOURNAL,
JOURNAL, 1554
1 5 5 4 EDITION
EDITION . . Page 121
Page 121
TITLE
T I T L E PAGE
P A G E OF
OF VALENTIN
V A L E N T I N MENHER,
M E N H E R , 1565
1565 . . . . . „ 182
1 32
TITLE
"
T I T L E PAGE
P A G E OF
OF PETRI,
P E T R I , 1605
1605 . . . . To face
face page 1184
34
TITLE
T I T L E PAGE
P A G E OF
OF PASSCHIER-GOESSENS,
PASSCHIER-GOESSENS, 1594
1594 . . . „ „ 1 36
136
TITLE
T I T L E PAGE
P A G E OF
OF KOCK,
K O C K , 1658
1658
"„ "„ 144
1 44
TITLE
" "„
T I T L E PAGE
P A G E OF
OF MELLIS,
M E L L I S , 1588
1588 „ 148
148
PAGE
" "
P A G E OF
OF THE
T H E JOURNAL
JOURNAL OF
OF "DARIEN"
" D A R I E N " COMPANY,
COMPANY, 1701
1701 . „ „ 158
1 58
TITLE
T I T L E PAGE
P A G E OF
OF LEDGER
L E D G E R OF
OFTHE
T H E "DARIEN"
" D A R I E N " COMPANY,
COMPANY, 1696
1696
", , "
„ 182
1 82
TRIAL
" "
T R I A L BALANCE
BALANCE FROM
FROM GEORGE
G E O R G E WATSON'S
WATSON'S EXERCISE
EXERCISE BOOK,
BOOK,
1674
1674 . 184
" " 184
PORTRAIT
PORTRAIT OF
OFJAMES BALFOUR (C.)
JAMES BALFOUR (C.) 1735-1795 , , 1190
1735-1795 . . .
"„ " 9 0
PORTRAITS
PORTRAITS OF
OF CHARLES
CHARLES SELKRIG,(C.)
SELKRIG, (C.) 1760_1837}
1760-1837 '
WILLIAM
WILLIAM PAUL,
P A U L , 1786-1848
1786-1848
194
JAMES BROWN, 1786-1864
JAMES BROWN, 1 7 8 6 - 1 8 6 4 ' ' • "» " *9 4

THOMAS MANSFIELD, 1800-1868

THOMAS MANSFIELD, 1800-1868
xv
XV
xvi
XVI LLIST OFF IILLUSTRATIONS
IST O LLUSTRATIONS
PORTRAITS OF DONALD
PORTa. . . .OF COTH. . .,..,N, 178
DONAU> CUTHBERTSON, 1 7 8....
2 - 186.}
1864'

JAMES E R R , 1782-1842
JAMES KKERR, 1782-1842
• • • To
To face page 200
face page 200
JAMES
JAMES M C C L E L L A N D , 1799-1879
MCCLELLAND, 1799-1879

PPETER
ETER W H I T E , 1810-1881
WHITE, 1810-1881

PORTRAITS OF CHARLES
PORT...,. .OF Mmn",Y
CHA..... M llAasrow, 1180'l-1885}
U R R A Y BARSTOW, 804-1885 '
CHARLES PEARSON, 1803-1884
CHARLES PEARSON, 1803-1884
• 220
220
R A L P H ERSKINE
RALPH SCOTT, 1804-1887
ERSKINE SCOTT, 1804-1887 "
>»
"
99

G EORGE A
GEORGE JAMIESON, 1828-1900
U L D J O JAMIESON,
AULDJO 1828-1900

PORTRAITS OF W
PORn...,."OF WAU'ER MACKEN"', 1817-1898}
A L T E R MACKENZIE, 1817-1898'

WILLIAM ANDERSON,
WILLIAM ANDERSON, 1817-1889
1817-1889
• 226
226
" "
a 99
JJ.. W YLLIE G
WYLLIE UILD,
GUILD, 1826-1894
1826-1894

G E O R G E ROBSON,
GEORGE ROBSON, 1800-1881
1800-1881

PORTRAITS OF JJORN
PORTR. . . .OF E,. WATSON,
OHN E WATOON, 1829-1901 '}
WILLIAM TURQUAND,
WILLIAM 1819-1894
- • • 230
2 30
" "
99 99
JAMES MESTON, 1821-1892
JAMES 1821-1892
J O H N SMITH,
JOHN (c.) 1798-1884
SMITH, (C.) 1798-1884

OFFICES OF
OF T H E INSTITUTE
THE INSTITUTE OF
OF C H A R T E R E D ACCOUNTANTS
CHARTERED IN
ACCOUNTANTS IN
E N G L A N D AND
ENGLAND AND W ALES—MOORGATE P
WALES--MOORGATE L A C E , LoNDON
PLACE, LONDON 2238
38
" "
a 99

TITLE
T I T L E PAGE BUINGHA, 1627
OF BUINGHA,
P A G E OF 1 6 2 7 .• 286
2 86
" "
99 99
 PART
P A R T II
HISTORY
HISTORY OF
O F ACCOUNTING
ACCOUNTING
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 A H
A HISTORY
I S T O R Y OF
O F AACCOUNTING
CCOUNTING
AND
A N D AACCOUNTANTS
CCOUNTANTS

CHAPTER
C H A P T E R I

NUMERATION
N UMERATION

PRIMITIVE, GREEK,
GREEK, ROMAN, MODERN

THE
T H E art of
of numeration,
numeration, or the method of of counting, whether
by words or signs or symbols, goes back to the dawn of
intelligence among human beings, though it can hardly be
said to begin with the moment
moment when one one thing is distinguish-
distinguish-
able from another. HowH o w the process of
of numbering did begin
conjectured from the habits of
can only be conjectured of those lower races
uncivilised, and from the results reached bv
who are still uncivilised, by
comparative philologists in their study of of language.
It
It is probable
probable that methods
methods ofof indicating
indicating small numbers
by some sort of of signs preceded
preceded the giving of of names, and
that indeed the names given denoted
denoted the signs employed.
employed.
Thus the words for ears,ears, wings, hands
wings, hands have been
been used by
the Chinese, the Tibetans, and the Hottentots respectively
two. The Brazilians generally count
to denote two. count by the joints
of the fingers, and consequently
of consequently only to three.
three. Every
greater number they express by the word for many. many. The
African
African Bushmen are said to have no names for any numbers
beyond
beyond two, and among some of of the Papuan islanders two
is the basis ofof their numeration;
numeration; they do not go beyond
go beyond
six, three twos signifying both six and an indefinite number.
33
44 HISTORY
H I S T O R Y OF
O F ACCOUNTING
ACCOUNTING
It isis abundantly evident
evident from
from the
the narratives
narratives of travellers
that the the majority of savage races learned to to make use use of
their fingers and and toestoes in i n helping them to to count, and and hence
bases of their
the bases their systems were five or or ten
ten or ortwenty.
twenty. The The
Mexicans have aa primitive primitive or or uncompounded
uncompounded name for for
twenty, and as as wewe count from ten ten upwards by by the
the multiples
and powers of ten, ten, so so they count by by the the multiples
multiples and and
powers of twenty. For F o r example, they express 100 100 by by aa
word which means 55 times 20, and 1000
20, and 1000 by by twice
twice 400 400plusplus
10 times 20. 20. TheThe Peruvians,
Peruvians,who who employed
employed knotted knotted strings,
strings,
quipus, probably the
called quipus, the earliest form of abacus, for
expressing numbers and and retaining
retaining them in in memory, had had a a
decimal system. With W i t h them aa single knot signified 10, 10,
two single knots 20, 20, aa double knot 100, 100, aa tripletriple knot 1000, 1000,
and so so onon to higher numbers. Among A m o n g the the early Greeks a a
quinary system seems to have been
quinary system seems to have been in use, as may be seen i n use, as may be seen
from the
from the verb
verb 7I"E,u7l"a~€III,
ire^iraCeiv, to to count
count by by Jives,
jives, andand thenthen generally
generally
to count.
to count After After the the establishment
establishment of of aa decimal
decimal systemsystem of of
numeration, a corresponding nomenclature
numeration, a corresponding nomenclature would follow with would follow with
comparatively little
comparatively little difficulty.
difficulty.
The cardinal
cardinal numbers in in Greek are—eh,
are-€r~, one; one; oV'o, 8uo, two;
two;
~ th ' .c ,-:J ... ~..,
ree; reo-a-ape?,
TpEI~, three;
Tpel?, T€(J'(J'apE~, lour;
four; 7I"EIIT€,
7reVTe,five;
five; EC;;' s i x ;E7rTa,
?£,SIX; €7rra,seven;
seven;
OICTW, eight; ewea,
oVrft), €1I11€a, nine; 8fICa,Seica,ten.
ten.
The names
The names forfor thethe numbers 11-19 11-19 are are formed
formed by con-
joining the
joining the units
units with ten, ten, with iinn general an an intervening
intervening
and (/Cai). A few
and (KCU). few of the the higher numbers numbers are are CIKOO-I,
EtICO(J'I, twenty;
rpiwcovra, £ICaTOJl, aa hundred;
Tpulcoll7'a, thirty; eKarov, x^ > a thousand;
hundred; Xt>..IOI,l0l a
thousand; ,uUPIOI, juvpioi,tenten
thousand. The The last number, often often termed
tenned a myriad (,uupla~), (/mvpids),
was the the highest denomination used by the the Greeks, though
they
they couldcould without difficulty express express numbers
numbers higher than than
10,000. Thus 100,000 would be oV/ca ,uupu;'8€~, and
8€ICa /jLvpidSes, anda abillion
billion
(that
(that is, a million
million millions) would be /mvpta/as ,uuplclKl~ ,uuplal
p.vpiai,uuplad€~.
/mvpiaSe?.
IIn
n thethe statement
statement of of large and and alsoalso of of comparatively
small numbers
small numbers it was was common
common to begin begin with with the the units and and
to ascend
to ascend to the the tens, hundreds, but but the the reverse
reverse order
was frequently
was frequently adopted.
adopted. Thus they they couldcould say say Jivefive andand
 NNUMERATION
UMERATION 55

as well
twenty as
twenty well asas twenty
twenty and when and
five~' when
and Jive; and was was omitted
omitted
they put
they put the
the tens
tens first,
first, thus
thus twenty (e^oa-i 7rell7"€).
five(€fKO(Tt
twenty five irevre).
Instead of
Instead of eighteen
eighteen or nineteenthe
or nineteen theGreeks
Greeks(and (andthe theRomans
Romans
also, as we
also, as we shall
shall see)
see) often
often said
said twenty wanting two
twenty wanting two or or twenty
twenty
wanting one. AA similar
wanting one. similar mode
mode of of expression
expression was employed
was employed
for 28,
for and Thucydides
9 ; and
28, 229; Thucydides usesuses aa myriad
myriad wanting
wanting three three
for nine
hundred for
hundred nine thousand sevenhundred.
thousand seven hundred.
Some peculiarities,
Some peculiarities, which
which are
are not
not easy
easy to to account
account for,for, occur
occur
in the
in the names
names ofof the
the cardinal numbers. Thus Thus the the words
words forfor 1,
1,
2, 3, 4 are declinable, those
2, those for
for 5 to
to 199 inclusive are indeclin- indeclin-
able, while those
those for
for 200,
200,300-1000,
300-1000, 2 0 0 0 - 1 0 , 0 0 0 are declinable.
2000-10,000
The
The names
names for
for the ordinal numbers
numbers are mostly mostly derived
from those
from those ofof the
the cardinal by by a process which is in general
uniform
uniform throughout. The The first of
of the ordinals (irpwTos (7rpooTOf: from
7rpo) has the ending of
irpo) of the Greek superlative—compare
superlative-compare the
form 7rp6aTo$
7rpOaTor: and the comparative 7rpOT€por:-and the second
comparative irporepos—and second
(J€UT€P0f:) has the ending of
(SevTepo^) of the comparative*
comparative. It It may here
be noted, however,
however, that some tribes exist which have names
cardinal numbers, but the only names they have
for many cardinal
for ordinals are .first
for and last.
first and last.
The Greeks expressed
expressed fractions whose numerator is unity
much as we do; do ; thus i± = TO ij/AUTU,
= T Otj/Aiov, !J =
TO rplrov, !
= TO Tp{TOII, =\ = TO TeTapToll.
T O reraprov.
Sometimes
Sometimes they conjoinedconjoined the name for the ordinal ordinal with a
part; thus!
word for part; TpiTrj/n6piop ti = 7r€/A7rTrJ/AOPWIl.
thus \ == TPtTTJ/AOpWII, 9 iretxitrn^opiov. Fractions
~-'ractions
with other numerators than than unity
unity they expressed by stating
the denominator first and then the numerator: numerator:
th 3 , , ,
us -5 = TWII 7r€lI7"e Ta Tpta /AeprJ
thus
~ ,

(of
(of the fivefive the three parts) parts);;
i- = Tooll €7rTa ai Juo /Ao'ipat
(of
(of the seven
seven the two portions).
portions).
Fractions
Fractions whose
whose numerator
numerator was was oneone less than
than the denomi-
denomi-
nator they
nator they expressed
expressed by by stating
stating the the numerator
numerator only only with
with thethe
word for
word parts; thus i§ == Ta
for parts; ra Juo /mepfj,the
Svo /AeprJ, thetwotwoparts
parts(out
(outofofthree).
three).
The way
The way in in which
which they they expressed
expressed certaincertain mixed
mixed numbers
numbers
may be
may be seen
seen from
from such
such aa phrase
phrase as as 1/38o/AoV rj/uLiraXavrov. It
efiSonov ~/ALTI;'AaIl7"OJl. It
means the
means theseventh
seventh a half
a half talent,
talent, andand is equivalent
is equivalent to to
sixsix whole
whole
talents and
talents and the
the seventh
seventh aa half half talent,
talent, that
that is, to 6t
is, to talents.
6i talents.
6 HISTORY
H OF
ISTORY O F ACCOUNTING
ACCOUNTING
The cardinal numbers in LLatin
The are unus,
a t i n are one; duo,
unus, one; duo, ttwo;
wo;
tres, three; quatuor,
tres, quinque, five;
quatuor, four; quinque, sex, ssix;
five; sex, i x ; septem,
septem,
seven;
seven; octo, eight; novem,
octo, eight; nine;decem,
novem,nine; ten.ten.
decern,
The names
The names forfor thethe numbers 11-19 are formed
11-19 are formed by pre-
fixing
fixing the units
units to
to ten,ten, the
the word decern
decem beingbeing modified
modified toto
decim. A few
decim. few of the the higher numbers are are viginti,
viginti, twenty;
triginta, thirty; centum,
centum, a hundred; mille, mille, a thousand. The The
last number, mille,
mille, isis the
the highest
highest denomination
denomination of of the
the Romans.
Romans.
The
The numbers between
between 20 20 and 100
100 are
are expressed
expressed either by by
the larger number first and the the smaller number
number after iitt with-
out
out a a connecting
connecting et (and), or by the smaller number number first
first and
and
the larger number after it it with aa connecting
connecting et et. Thus 21 21 is
is
viginti unus,
unus, or unus
unus et et viginti. N umbers
Numbers above 100 always
have the larger number first.
The numbers 18,18, 19, 28, 29, &
19, 28, c , are often
&c., often expressed
expressed by by two
from twenty, onefrom
twenty, one twenty,&c.
from twenty, &c. The
Thesmaller
smallernumber
numberis isput
put
first, and de is inserted for from~'
de is from; thus 18 = = duodeviginti,
duodeviginti, 19 = =
undeviginti, 28 = duodetriginta, 29 = undetriginta,
undeviginti, undetriginta, and
and so on to
undecentumfor
undecentum for99. 98however
99. 98 howeverisiseither
eithernonaginta
nonagintaoctooctooror octo
octo
et nonaginta.
et nonaginta.
A s in
As i n Greek, thethe names of thethe ordinal numbers are are de-
de-
rived from those of the cardinal, with the exception
exception of primus
primus
and
and secundus. Primus is
secundus. Primus is the superlative of of prae or pro
(before), and secundus the
and secundus the present participle of the the verb
(follow).
sequor (follow).
sequor
Fractions are expressed
expressed by
by the ordinal
ordinal numbers, with part
or parts (paTs
{pars or paTtes) expressed
or partes) expressed or thus J =
or understood; thus!
pars, tf =
tertia paTs,
tertia = tTes
tresseptimae. Otherforms
septimae.Other formsare
areemployed
employedwhen when
the numerator is is one
one less than thethe denominator; thus i§ =
partes (two
duaepaTtes
duae (twoparts
partsout
outof three),i %
ofthree), = tTes
= tres partes
paTtes (three parts
(three parts
out of four). Sometimes
Sometimes aa fraction is is expressed
expressed as
as the
the sum
sum ofof
two fractions;
fractions ; thus pars quarta et
paTS quaTta septima==i:i++t T=—
et septima H:H some-
* some-
times as as the product of two two fractions; thus quarta septima
septima==
1
x|
I X T=n.
"i"
1 1
=A .
The Roman unit of weight, length,
length, area was called as (our
as (our
ace), and it
ace), it was divided into twelve equal parts,
parts, called unciae,
unciae,
 NNUMERATION
UMERATION 77

whence came
whence came our
our ounce and inch.
ounce and The names
inch. The names of
of the
the parts
parts
are-
are—
Uncia
Uncia == 1~
V X ofofthe
the unit.
unit. Septunx
Septunx _= iT
7 of
of the
the unit.
unit.
Sextans or J1"
Sextans == 1)- or „ „" Bes
Bes ==hA or §
or i" „ „"
Quadrans == A
Quadrans or!-"
-h or J „ „" Dodrans
Dodrans _ 9 orf
= -A or i" „ "
Triens
Triens =
=^ or Ji"
-A or „ „" Dextans
Dextans —
=# or 4t
i £ OT "
. "
99 99

Qulncunx
Quincunx = V5
= 12" „" " „ D eunx
Deunx
—
_ T3T
11
-12
11

Semls·
T
"
99
"
99

Semis =
= 12 or
8
or |~" „ "„
Here we
Here we have
have the
the first occurrence
occurrence of of duodecimal
duodecimal fractions.
In the expression
In expression of of mixed
mixed numbers
numbers the fractional part part is
is
followed
followed by that ordinal numbernumber which is one more more than the the
given integer; thus Si 3!- =
= quadrans quartus, the fourth aa
quadrans quartus,
quarter (three
(three wholes
wholes being
being understood),
understood), 2J = semis
2~ = the
tertius,the
semis tertius,
third a half (two wholes
wholes being
being understood).
understood). Semis con-
tertius,con-
Semis tertius,
tracted to sestertius, waswritten
sestertius, was writtenwith withthe
thesymbol
symbolfor fortwo
two(II),
(II),
and
and S, the initial of semis, afteritit(lIS).
semis, after (IIS). TheThehorizontal
horizontalstroke
stroke
that was
was drawn through the the whole
whole symbol, as as iinn our ft, £
our lb,
for pounds, is represented
is represented by the printer's H S
HS. .
The names of thethe cardinal
cardinal numbers iinn French are are derived
the corresponding
from the corresponding Latin
L a t i n names transformed more more or less
regularly according to the the laws of phonetics.
phonetics.
The numbers 17, 18,19 were in
17, 18,19 i n classical
classical Latinseptemdecim,
Latin septemdecim,
octodecim,novemdecim,
octodecim, novemdecim, butbut in ipopular
n popular L a t i they
Latin n they weredecem
were decern
et septem,
et septem,decem decern et octo,
et octo, decem decern and these
et novem,
et novem, popular
and these formsforms
popular
have given rise to the the French terms dix-sept, dix-sept, dix-huit,
dix-huit, dix-
dix-
neuf. Among
neuf A m o n g the
the multiples
multiples of 10, the first
10, the first five
five are
are formed
formed
regularly from the the Latin,
L a t i n , but
but the
the usual
usual names
names for for 70,
70, 80,
80,90
90
are not septante,
septante, octante, nonante,but
octante,nonante, but soixante-dix,
soixante-dix,quatre-
quatre-
vingts, quat're-vingt-dix.
vingts, quatre-vingt-dix. The
The name septante occurs in
name septante i n La
La
Version des
Version Septante,the
des Septante, theGreekGreek version
versionof ofthe
the Hebrew
Hebrew Bible,
Bible,
called
called by by us
us the
the Septuagint;
Septuagint; along along with octante
octanteand and nonante
nonante
it
it is
is found
found in in certain
certain provinces
provinces of of the
the north
north and
and east
east of
of France,
France,
and
and in i n some
some parts
parts of
of Belgium.
Belgium.
The
The forms soixante-dix, &c.,
forms soixante-dix, & c , are
are vestiges
vestiges ofof the
the vigesimal
vigesimal
system
system whichwhich waswas ini n use
use among
among the the ancient
ancient Gauls.
Gauls. ThisThis
vigesimal system and the Roman decimal
vigesimal system and the Roman decimal system were used system were used
88 HIS'rORY
H OF
ISTORY O F ACCOUNTING
ACCOUNTING

concurrently during the

concurrently the Middle A Ages; thus 32
g e s ; thus was either
82 was either
trente
trente et deux or vingt et douze,
deux or douze, 43 either quarante
48 either quarante etet trois
trois
or deux vingts et
or deux et trois,
trois, 158 either cent
158 either cent cinqtiante
cinqteante etet huit
kuit
or sept-vingts
or dix-kuit. IIn
sept-vingts et dix-huit. the seventeenth
n the seventeenth centurycentury sixsial
common expression
vingts was a common expression for
for 120,
120, and at the the present
day
day there is an hospital in Paris Paris for
for three hundred blind
people called Les Les Quinze-Vingts.
Quinze-Yingts.
The same
The same adoption
adoption of of the popular
popular LLatin words for
a t i n words for 17,
18, 19
18, Italian diciassette,
19 is seen in Italian diciannove, and
diciotto,diciannove,
diciassette, diciotto, and
for 16,
for 16, 17,
17, 18, 19 in
18, 19 in the
the Spanish diezdiez yy seis,seis, diez
diez yy siete,
siete,
diez
diez yy ocho,
oeM, diez
diez yy nueve. The names for
nueve. The for 70,70, 80, 90 in
80, 90 in
L a t i n become settanta,
Latin settanta, ottanta, novanta in Italian, and
ottanta, novanta
setenta,
setenta, ochenta, noventain
ochenta, noventa in Spanish.
Spanish.
The word million, derived from the Italian
The Italian milione,
miliooe, means
a big thousand, just as balloon means a big ball, saloon, saloon,
derived from salone,
salone, a big sola.
sala.
For
F o r 1000 millions the French now
1000 millions now use the word milliard
as well as billion. In the sixteenth and seventeenth
seventeenth centuries
a French billion was a million ofof millions; its present meaning
in France dates from the eighteenth century.
In
I n old French,
French, numbers expressed
expressed byby thousands, hundreds,
tens, and units had the various denominations connected
connected byby
et (and). This conjunction
conjunction is now suppressed except before un
and
and onze.
ooze.
The names of of the ordinal
ordinal numbers come from from the corre-
corre-
sponding cardinals.
cardinals, except in the case of premier. Twenty-
of premier. Twenty-
first, however, is vingt
vingt et unieme.
unieme.
In
I n German the names of of the cardinal
cardinal numbers from from 1-20,
1-20,
80-100, 1000 closely resemble our own. For 21, 22, Gennans
F o r 21,22, Germans
say
say ein und zwanzig,
zwanzig, zwei
zweiund zwanzig,and
undzwanzig, and not
not zwanzig
zwanzigein. ein.
As
A s in Greek and Latin, so in Gennan German there is found the the
idiom viertekolb
viertehalb(the
(thefourth
fourthaahalf) for8i,
half)for 8&,e{ftekalb
elftehalb (the eleventh
(the eleventh
for lot.
a half) for 10£. Instead,
Instead, however,
however, of zweitehalbfor
of zweitekalh forIi1£they
theyuse use
anderthalb, from
andertkalh, ander (other), in
from antler in the sense of of second.
second.
The Germans still retain
retain what seems to us a peculiarity
in their
their expression of time.
time. Thus they say kalb halb zweizwei (half
two) for half-past one, kalb zehn(half
halb zelln (half ten)
ten) forfor half-past
half-past ninenine
 NUMERATION
N UMERATION 99

This mode of
This of expression
expression is exactlyexactly paralleled in the the Scottish
Scottish
where half twelve
dialect, where twelve means
means half-past eleven, and so so on.
AA similar
similar idiom is found found in French,
French, in some Eastern Eastern languages,
and
and in Icelandic, where where half the fourth hundred == 350, 350, half the
fourth ten = 35, and so
= 35, so on.
Our
Our own own names names for for numbers show show few few peculiarities
peculiarities in in
their composition, the exceptions exceptions being being the the names
names for for the
cardinal numbers eleven eleven and and twelve,
twelve,and and thetheordinals
ordinalsfir.llt
firstand and
second. Eleven is obviously
second. obviously the same same word as Anglo-Saxon
endlu/on, Gothic ainlif, German eilf or elf, but
endlufon, but whether
whether it
stands for one left (after
It:ft (after the base, ten, is taken away)
away) is some- some-
what doubtful. Twelve is supposed supposed to to stand for two left It:ft
(after
(after ten is taken away), and is derived from the Teutonic
base, twalif
twalif. FirstFirst is the superlative of of a word meaning before, bifore,
and second
second is derived from the LLatin a t i n secundus.
secundus.
With
W i t h regard to the earliest Greek notation for numbers
our information is scanty, for the oldest inscriptions contain
oldest inscriptions
numerals. There is reason to believe that a set of
no numerals. of symbols
symbols
where I, 1, 2, 3, 4 were denoted denoted by upright strokes, 5 by P , the
by ['1,
initial letter of of 7/117'£,
irevre, 1010 by!l.
by A (8/Ka),
(&*a), 100 100 by H (€KaTov),
(e/caroV), 1000
1000
by XX (X{Xwt), 1 0 , 0 0 0 by M (p.vplot),
{yikioi), 10,000 (juLvpldi),was waswidely
widelyused
usedininGreeceGreece
before the letters of of the alphabet were adopted adopted for numeral
expression.1
expression. 1

Among
A m o n g the letters of of the alphabet the Greeks inserted
three strange letters,letters, soy (sigma), Q 9 or <; Cj (koppa), ~^ (sampi), in
order to obtain the twenty-seven symbols symbols 2 necessary to express
2
express
all the numbers from 11 to 999. 999.
The following table gives their their scheme
scheme for representing
numbers:-
numbers:—
d ~ i , , ~ r ~ w
1 2 3 4 5 6. 7 8 9
t' ,( X' p.' v' ~' 0' 7r" ,,'
10 20 30 40 50 60 70 80 90
p' rr' T' v' cp' X' 'i/ ol "'A'
100 200 300 400 500 600 700 800 900
11 See
See illustration
illustration opposite page 26.
opposite page 26.
I8 Nine
Nine for
for units,
units, nine
nine for
for tens,
tens, and
and nine
nine for
for hundreds.
hundreds.
10
10 H I S T O R Y OF
HISTORY O F ACCOUNTING
ACCOUNTING
To
T o denote
denote thousands
thousands they
they began
began the
the alphabet
alphabet again and
again and
put
put aa short
short stroke
stroke at
at the
the left
left of
of the
the letter.
letter. Thus
Thus
p/x == 1000
1000 fi ,(3 == 2000
2000 / y=
/'1 3000, &c.
= 8000, &c.
T o denote
To denote 10,000 they generally
10,000 they generally employed
employed Mu Mv or M , and
or M, and
if there
if there were
were several
several tens
tens of
of thousands
thousands they
they wrote
wrote the
the number
number
/l
of them
of them above
above thethe M;
M ; thus
thus M M == 20,000.
20,000.
Their notation for whole numbers will
Their notation for whole numbers will bebe understood
understood from from
examples:—
the following examples :- .,,,,{
KJ' = 28,
K,,/' r / /=
23, TP.' = 840, pvy' =
340, pll"/' = 158,
153, ,dX0,,/' 4673, M,,,/~Ka'
^x ?' == 4678,
0
M / y ^ a ' == 8,478,921.
8,473,921.
Fractions whose numerator was unity unity were expressed by
writing the denominator and affixing two two accents;
accents ; thus! thus i == "/",
7",
1\ == Ld". If
rt I f the numerator was not not unity, it it was written to to the
the
left of the denominator; thus -b ^ == 'I'
tf ',,/".
iy". The symbol for! for £ in
in
resembles L,
Archimedes resembles L , in
i nHeron
HeronaacapitalcapitalS.S.
The numerical
numerical notation of the Romans is is much inferior to
that of the Greeks, though far fewer symbols symbols are employedemployed iin n
it. The symbols are:
I
I VV X X L L C C D M
1 55 10 10 5050 100 100 500500 1000 1000
The character for 500, namely D
for 500, D,, is
is a modified
modified form of ID, D,
C O is 1000, D
CI) D)D is 5000, CCI33
CCI)) is 10,000, and and so on. Some-
times a stroke was placed over over a number
number to indicate that its its
value was was increased a thousand fold; tthus h u sI7 == 1000,
1000, V == 5000,
XX== 10,000.
As
A the Roman
s the Roman notation was was adopted
adopted throughout
throughout Europe,
and was
and was almost
almost exclusively
exclusively employed
employed during twelve twelve or
or
thirteen centuries, and
thirteen and is still
still for certain purposes
purposes (to distin-
guish chapter
guish chapter from
from verse,
verse, volume
volume fromfrom page,
page, &c.)
&c.) current
current
everywhere, it
everywhere, it is
is expedient
expedient toto state
state the
the rules
rules to to be
be observed
observed
in reading
in reading any any number
number expressed
expressed in in their
their manner.
manner.
(1) IIf
(1) to the
f to the right
right of
of any
any number
number another
another number
number is is
written which
written which isis equal
equal to
to or
or less
less than
than thethe first,
first, the
the value
value of
of
the first
the first must
must bebe increased
increased by
by that
that of
of the
the second.
second. Thus Thus
III
I V
VII X II
XII LLV D
DC C MDCLXV
}IDCLXV
22 66 12 55
55 600
600 1665
1665
 NUMERATION
N UMERATION 11
11

(2) If
I f to the left of
of any number another number is
written which is less than the first, the value of
of the first
by that of
must be diminished by of the second. Thus
IV
IV IX
IX XL
X L CD
CD
4 9 40 400
400
(3) If
(8) I f a number is written between between two two others which are
greater than it, it, it must be subtracted from the one one on the
right of
of it. .Thus
Thus
XIV
X IV XIX
X IX LIX
LIX CXL
CXL MCM
M CM
14
14 19
19 59
59 140
140 1900
1900
As
A s regards the invention of of the nine digits and the cipher,
with the application to them of of the principle of of local value, it
is not possible to speak with certainty. It is now, however, however, an
accepted opinion that it is to the Hindoos we must ascribe this
momentous improvement in arithmetical
momentous improvement arithmetical notation, but we we
have no evidence to enable us to say when the improvement improvement
was first made. Before Before the end of of the ninth century the
Hindoo figures were known to the Arabs, and before the end
of the tenth
of tenth they were in general use among among them.
them. B Byy the
eleventh century they had been introduced
eleventh century they had been introduced into Spain by the into Spain by the
Moors,
Moors, and they were were known
known in Italy at the the beginning
beginning of of the
thirteenth century. It
thirteenth century. It has
has been
been conjectured
conjectured that that the com-
the com-
mercial intercourse between Italy and the East
mercial intercourse between Italy and the East would suffice would suffice
to account
to account for
for the introduction of
the introduction of these
these numerals;
numerals; and it is
and it is
certain that the first Italian who wrote about
certain that the first Italian who wrote about them (1202), them (1202),
Leonardo of
Leonardo of Pisa, the son
Pisa, the son of
ofBonacci (Fibonacci), had
Bonacci (Fibonacci), had travelled
travelled
extensively in the
extensively in the East.East.
It is sometimes
sometimes asserted that Gerbert, who who was born at
Aurillac, in Auvergne, and who who was afterwards promoted promoted to
the bishoprics of of Rheims and Ravenna, and finally became
Pope
Pope under the title of of Sylvester II.,
I I . , introduced into France a
knowledge of
knowledge of the Arabic numerals in the latter part of of the
tenth century, but this is rather improbable. IItt is known that
in early life Gerbert studied among among the Saracens, and he is
said to have written
written extensively on arithmetic and geometry. geometry.
12
12 HISTORY
H I S T O R Y OF
O F ACCOUNTING
ACCOUNTING
When
W h e n oror how
how the
the Arabic
Arabic notation
notation came
came into
into England
Englandititisis
impossible to to say
say with any approach to to certainty.
certainty. One of the the
modes in in which persons who could read obtained aa knowledge knowledge
of it
of it was from the ecclesiastical calendars, which were widely widely
distributed in in the fourteenth and fifteenth
fifteenth centuries.
centuries.
After the introduction of the Hindoo numerals for for the ex- ex-
pression of integers, the next great improvement
improvement in arithmetical
arithmetical
notation was was thethe invention of decimal fractions. From F r o m the the
time of Ptolemy, and probably also before his time, it it had been
customary to divide the circle into 360
customary 3 6 0 degrees (/Lo/pat).
(/xoipai). Each
of these degrees was divided into 60
of 60 equal parts called primes,
each prime into 60 60 equal parts called seconds, each second
into 6060 equal parts called thirds, thirds, and
and so on. on. OurOur names, names,
minutes and and seconds, whether applied to angular magnitude magnitude
or to time, are shortened
shortened forms of the expressions
expressions first minute
(partes minutae
parts (partes minutaeprimae)
primae) andandsecond
second minute
minuteparts
parts (partes
(partes
minutae secundae). The notation adopted
mimtiae secundae). The notation adopted for degrees was for degrees wasa a
stroke written above the number of them and accents, a c c e n tI sII, III, &
1 1 1
c,
&c.,
for the different
different orders
orders of sexagesimals.
sexagesimals.
The first indubitable appearance
appearance of decimal fractions fractions
occurs iinn the 1525, in
the year 1525, the extraction of a square
in the square root.
Orontius Finaeus, aa professor mathematics in
professor of mathematics in Paris, wish-
approximate to the
ing to approximate the square root of 10, affixes to it
10, affixes it six
six
ciphers, extracts
extracts thethe root inin the
the usual way,way, and
and obtains
obtains the the
number
number 3162.3162. Then taking 162 he he multiplies it it by 60, 60, get-
ting 7 2 0 , whence 9
ting 99720, 9 primes are are obtained
obtained by cutting off the the
three
three right-hand digits. Again, 7720 2 0 x 60 43,200, whence 43
60 = 43,200, 43
seconds; lastly, 200 200 x 60 12,000, whence 12
60 = 12,000, 12 thirds.
thirds. Accord-
ing
ing to our
our mode of working this would would stand—
stand-
3·162
3 162
60
60

9·720
9 720
60
60

43·200
43-200
60
60

12·000
1 2000
 NUMERATION
N UMERATION 13
Thus ""
J10 12'". Though Finaeus expresses the
10 == 3 9' 43" 12"'. the root
sexagesimally,
sexagesimally, yetyet he
he expressly states that in in 3162 the
the 3 de-
de-
the 11 one-tenth of aa unit, the
notes units, the six-tenths of one-
the 6 six-tenths
tenth of aa unit, the
the 2 two-tenths
two-tenths of one-tenth of one-tenth
one-tenth of
of
a unit.
unit. This is is the
the germ of the doctrine of decimal fractions.
The most notable development
development of it it isis found inin Stevin's
Arithmetic, which was
Arithmetic, was published inin 1585 inin French. It con-
Disme, "by
tained aa small treatise, La Disme, the which we
" b y the we can
can
operate with whole numbers without fractions."fractions." This is not
is not
quite the modem view, namely, that by
the modern by extension of the nota-
tion for
for integers, integers and and fractions can be treated by
can be by
the same rules, but but itit comes near to to it.
it. The
The number
which wewe write 27'847
27·847 Stevin writes 27(0) 8(1) 4(2) 7(3), or or
(0) (1)
(0) (2) (3)
(1) (2)
when using
when using it
it in
in operation
operation 27
27 8 8 4 7. The
4 7. following are
The following are
other
other notations
notations for
for decimal
decimal fractions which occur
fractions which occur in
in books
books
subsequent to'Stevin's time:
subsequent to'Stevin's time:
12 3
123
I
27 | 847 27 8' 4" 7'"
8'4" 7"'
27 847'"
847'" 27
27 847(3)
847 (S)

I
27 | 847 thirds 27 ·8·4·7
•8-4-7
27 847 27 I| 847
847

The question of whowho introduced the the point oror comma

comma to
separate the
the integers from the
the fractions hashas been discussed
by De
D e Morgan, and
and hehe does not
not admit thethe claim that hashas
been made byby Peacock for
for Napier, the
the inventor of logarithms.
Whether or
Whether or not
not Napier habitually used the the comma, there
is at
at any
any rate one
one instance where it it occurs inin his
his Rabdo-
was published in
logia, which was in 1617; he he gives a a quotient as
as
1993,273 or 3'". This simplification of the notation
or 1993,2' 7" 3"'.
for decimal fractions, obvious enough as as it
it seems, diddid not
not
become common the
common till the middle of the seventeenth
seventeenth century.
It was
It was only about a a century agoago that decimals were
applied to
to metrological reform. The The tables of the the measures
measures
for length, area, capacity, weight in use in
in use in France were
very irregular,
irregular, and the French National Assembly
and the Assembly in in 1790
14
14 HISTORY
H I S T O R Y OF
O F ACCOUNTING
ACCOUNTING
resolved to create a new system of of measures, the sub-divisions
of
of which should harmonise with the decimal system of
numbers. The commission of of scientific men to whomwhom this
reform was entrusted selected selected as a basis a length which
ten-millionth part of
should be the ten-millionth of the distance between
between
the North
North Pole and the Equator. Equator. This distance they called
a metre,
metre, and to express the multiples multiples of
of it they used as
prefixes the Greek words, somewhat somewhat modified, for 10, 10, 100,
100,
1000 (deca-, hecto-, kilo-) kilo-);; to express
express the sub-multiples they
L a t i n words for 10,
used the Latin 10, 100, 1000 (deci-, centi-,
100, 1000 c6llti-, milli-)
in the sense of of -fir,
TO-, Th,
rfor, Tlrk.
TCW. The standards or units for for
the other tables are derived from the metre, and hold a
remembered relation to it,
definite and easily remembered it, and their
multiples and sub-multiples are expressed expressed byby the same pre-
fixes. Thus the unit for measuring capacity or volume volume
being the litre, and that for measuring weight being the
gram, it is known at once that a hectolitre == 100 100 litres, a
centilitre =
= ·01
*01 litre, a kilogram = ==1000 grams, aa milligram
1000 grams, milligram
= ·001
= -001 gram. The process of of reduction therefore
therefore from one one
measure down to or up to
measure to another of of the same kind
kind consists
in nothing
in nothing more
more than changing the
than changing the position
position ofof aa decimal
decimal
point.
point.
This is not the place in which to discuss the advantages advantages
or the disadvantages of of the Metric System, but after the
exposition which has been been made of of how a tolerably uniform
system ofof numeration and a completely completely uniform system of
notation have been gradually built up among among civilised
civilised
nations, it may be worth while to see what improvement improvement
awaits them in the distant future. future.
Herbert Spencer, in a pamphlet pamphlet 1 entitled "Against the
1

Metric System," proposes as the radix of of numeration the

number 12.12. H Hee says, "This
" This process of of counting by by groups
groups
and compound
compound groups, tied together together by names, is equally
practicable with other groups than 10. 10. WWe e may form our
numerical system by by taking
taking a group of 12, then 12 groups
of 12, groups
1
1
Published by Williams &
& Norgate, 1896.
1896.
 NUMERATION
NUMERATION 15
of 12,
12, then 12 of these compound groups; and so on as
before. . ... . It needs only a small alteration in our method method
of numbering to make calculation by groups of 12 exactly exactly
similar to calculation by groups of 10; 10; yielding just the
same facilities as those now supposed to belong only to to
decimals. . .. . . To T o prevent confusion different names and
symbols would be needed for the digits, and to
different symbols to
acquire familiarity
familiarity with these, and with the resulting
multiplication-table, would of course be troublesome:
troublesome: perhaps
not more troublesome, however, than learning the present
system
system of of numeration
numeration and and calculation
calculation asas carried
carried on
on in
in another
another
language."
language." Spencer states
Spencer states that
that hehe thinks
thinks this
this system
system will
will
not be adopted for generations.
not be adopted for generations. "But it is not an un-
" But it is not an un-
reasonable belief that further intellectual progress
reasonable belief that further intellectual may bring
progress may bring
the conviction that
the conviction since a
that since a better
better system
system would
would facilitate
facilitate
both the thoughts and actions of men, and in
both the thoughts and actions of men, and in so far diminishso far diminish
the friction
the friction ofof life
life throughout
throughout the
the future, the task
future, the task ofof establish-
establish-
ing it should be undertaken."
ing it should be undertaken."
The crazy attemptattempt of of certain Frenchmen during during their
first Revolution to reform the Calendar of the world has
first
been derided by every nationality, the French themselves themselves
included, but the Frenchmen's task (it was carried carried on for
more than twelve twelve years) was simplicity and sanity itself itself
compared to this proposal to change the radix of of numeration.