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.
