What is the carrying amount?

Definition of Carrying Amount

The term carrying amount is also known as book value or carrying value. The term carrying amount is often used when there is a valuation account associated with another general ledger account.

Examples of Carrying Amount

Here are some examples when the term carrying amount or carrying value is used:

  • A company's Accounts Receivable has a debit balance of $84,000. The company's Allowance for Doubtful Accounts has a credit balance of $3,000. The carrying amount or carrying value of the receivables is $81,000.
  • A company has a truck that has its cost of $50,000 in its account entitled Truck. The associated account Accumulated Depreciation has a credit balance of $43,000. The truck's carry amount or book value is $7,000.
  • A corporation has Bonds Payable of $3,000,000 and Unamortized Discount on Bonds Payable of $150,000 and Unamortized Issue Costs of $50,000. The carrying value of the bonds is $2,800,000.

Free Financial Statements Cheat Sheet

543,840
Subscribers
You are already subscribed. This offer is not available to existing subscribers.
Error: You have unsubscribed from this list.
Step 2: Please check your email.