The proceedings on a reference are governed in Ontario by rules 402 to 459. Some of the rules especially relating to the taking of accounts are as follows (d):

411. The master may cause parties to be examined, and to produce books, papers and writings, as he thinks fit, and may determine what books, papers and writings are to be produced, and when and how long they are to be left in his office; or in case he does not deem it necessary that such books and papers or writings should be left or deposited in his office, he may give directions for the inspection thereof by the parties requiring the same, at such time and in such manner as he deems expedient.

417. Where an account is to be taken, the accounting party, unless the master otherwise directs, shall bring in the same in debit and credit form, verified by affidavit. The items on each side of the account shall be numbered consecutively, and the account shall be referred to by the affidavit as an exhibit, and shall not be annexed thereto.

418. The master may direct that in taking accounts, the books of account, in which the accounts required to be taken have been kept, or any of them, be taken as prima facie evidence of the truth of the matters therein contained.

419. Before proceeding to the hearing and determining of a reference, the master may appoint a day for the purpose of entering into the accounts and inquiries, and may direct the production and inspection of vouchers, and if deemed proper the cross-examination of the accounting party on his affidavit, with a view to ascertaining what is admitted and what is contested between the parties.

The mortgagor may "surcharge" and "falsify" (e). These terms have been defined as follows (f):

(c) Beatty v. O'Connor, 1884, 5 O.R. 731, 747; Reddick v. Traders Bank of Canada, 1892, 22 O.R. 449; Shepard v. Jones, 1882, 21 Ch.D 469.

(d) See also the rules relating to mortgage actions set out in chapter 24, Action for Foreclosure or Sale, Sec. Sec. 239 and 241.

(e) In re Webb, Lambert v. Still, [1894] 1 Ch. 73. (f) Pitt v. Cholmondeley, 1754, 2 Ves. Sen. 565.

"If any of the parties can show an omission for which credit ought to be given, that is a surcharge; if anything is inserted that is a wrong charge he is at liberty to show it, and that is a falsification."

It is provided by rule 420 as follows:

420. A party seeking to charge an accounting party beyond what he has in his account admitted to have received, shall give notice thereof to the accounting party, stating as far as he is able the amount sought to be charged and the particulars thereof in a short and succinct manner. The master may direct any party who seeks to falsify an account to deliver particulars of the item objected to. The particulars shall refer to the item by number.