A more thorough explanation:

Definition: A tally is a stick that was cut into two parts and marked with notches to show what was due between a debtor and creditor. It was used as a receipt for money or chattels. The stick was split lengthwise into two unequal pieces. The longer piece, which contained a stump or handle and was called the ‘stock,’ was given to the person making the payment, and the shorter, a flat strip called the ‘foil,’ to the other party. If the sum involved was disputed, the two pieces could be fitted one to the other to see if they would ‘tally.’

Example: In the past, when people borrowed money or goods from each other, they used tallies to keep track of what was owed. For example, if someone borrowed 10 pounds, a notch would be cut on the tally stick to represent that amount. When the debt was paid, the stick would be split in two, and each party would keep one piece as proof of the transaction.

Explanation: The example illustrates how tallies were used to keep track of debts and payments. The notches on the stick represented the amount owed, and the split pieces served as proof of the transaction. This system was used for centuries before the advent of modern banking and accounting methods.

Additional Example: The word ‘cheque’ comes from the same root as ‘exchequer.’ In the past, when people lent money to the Bank of England, tallies were cut for the amount. The Bank kept the foil, and the lender received the stock, which represented ‘Bank Stock’ of the amount recorded upon it. When the form of cheque was adopted, it was not called a foil, but the part retained by the payer is still the counterfoil.

Explanation: This example shows how the terminology of tallies has left a permanent imprint on our language. The use of tallies for recording accounts and transactions has influenced the development of modern banking and accounting practices.