Kenneth O. Elvik, Editor
IOWA STATE UNlVERSlTY
Reviewed by Ryoji Inouye, Chuo University and Kousaku Hamada, Chiba University of Commerce
The objective of this book is to indicate how bookkeeping was done in the Edo Era (1603-1867), which was a feudal age, before the European style of bookkeeping was imported into Japan in the 1860’s. The author states that calculations which determine net worth and which serve to check each other were adopted in those days, though the bookkeeping peculiar to Japan did not use the ledger account form.
This book is divided into three parts. The first part (Chapters 1 through 7) deals with the Tomiyama accounting books. The second part (Chapters 8 and 9) concerns the accounting books of the Tanabes, the Kondohs, the Ishimotos, the Honmas, the Hasegawas,
the Onos, the Kohnoikes, the Mitsuis, and the Nakais, and the third part forms an appendix.
The contribution of this author is in the area of the investigation of the bookkeeping methods of the Tomiyama family, which are presented in part one since the bookkeeping methods of the fami¬lies which are included in part two have already been researched by other scholars, namely, Professors Hirai, Ogura, Yamashita, and Yasuoka. (Japanese bookkeeping methods in the Edo Era are be¬ing investigated by a special committee on the existing state and the future responsibility of accounting history research of the Japan Accou nti ng Association.)
According to the author, though there are many differences be¬tween the Tomiyama accounting procedures of the main office and those of the branch offices and between the first stage of the Edo Era and the middle stage of the Edo Era, the development of the Tomiyama accounting procedures were always that of an attempt at completion of the dual calculations.
Here are the dual calculations: one is the calculation by formula (1); the other is that by formula (2):
Po + R = E + P1 (1)
A1 — L1 = P1 (2)
Below is the key to the symbols in the above formulas:
Po = Proprietors’ equities at the beginning of the period.
R = Revenues for the period.
E = Expenses for the period.
P1 = Proprietors’ equities at the end of the period.
A1 = Assets at the end of the period.
L1 = Liabilities at the end of the period.
The details of the items such as Po, R, E, P1, A1, and L1 seem to be recorded in subsidiary accounting books. The figures and the titles on a (calculation statement (the Sanyo Cho are transferred from the subsidiary books directly, or to the Sanyo Cho from summary state-ments which sum up each subsidiary book. Thus, the author points out that there was definitely a developed bookkeeping method in the Tamiyama accounting books though it did not use ledger ac¬count form.
We have to notice that not only did the Tomiyama bookkeeping system have the dual calculations, but also that bookkeeping meth¬ods of other big merchants in the Edo Era used the same calcula¬tions. Therefore, the great contribution of this author is to point
out that the Tomiyama accounting books which are the oldest in existence used the dual calculations. We must value the author’s contribution highly when we consider the age of the author’s re¬search material and the difficulty in deciphering it.
It is regrettable however, that in his investigation of the origin and development of bookkeeping methods peculiar to Japan in the Edo Era, the author did not sufficiently trace the dimensions of eco¬nomic and social history and clarify the degree to which the book-keeping method satisfied social needs.
Furthermore, we hope that the difference between the meaning of “double entry” and “dual calculation” as in this book will be clarified.
Shigeo Aoki, editor, History of Development of Accounting in Japan; Development and Perspective of Accounting in Our Country, Tokyo: Doyukan, 1976, xii, 331 pp., y2,300, (published in Japanese)
