Net carrying amount

Net carrying amount refers to the current recorded balance of an asset or liability, netted against the amount in the contra account with which it is paired. For example, a fixed asset has a current recorded balance of $50,000, and there is $10,000 of accumulated depreciation in the contra account with which it paired. This means that the net carrying amount of the asset is $40,000. Similarly, if a bond liability has a current recorded balance of $250,000 and there is $20,000 of a discount on bonds payable that is linked to the same bond, then the bond's net carrying amount is $230,000.