A contra-asset account, such as Accumulated Depreciation, will have a credit balance.

Accumulated Depreciation is used to record the cumulative depreciation of an asset over its useful
life. Since it is a contra-asset account, it has a credit balance that offsets the balance of the related
asset account. The credit balance in Accumulated Depreciation reduces the carrying value of the
asset on the balance sheet.

A contra-liability account, such as Discount on Notes Payable, will have a debit balance.

Discount on Notes Payable is used to record the discount received when a company issues a bond or
notes payable at a lower interest rate than the market rate. It is a contra-liability account because it
offsets the liability of the notes payable. The debit balance in Discount on Notes Payable is
subtracted from the face value of the notes payable to arrive at the carrying value on the balance
sheet.

Carrying value, also known as book value or net book value, refers to the
value at which an asset or liability is reported on the balance sheet. It
represents the amount at which an asset is recorded after accounting for
any accumulated depreciation, amortization, impairment, or other
adjustments.
For assets, the carrying value is calculated by subtracting any accumulated
depreciation or impairment from the initial cost of the asset. This adjusted
value reflects the net amount at which the asset is carried on the balance
sheet.
For liabilities, the carrying value represents the outstanding balance of the
liability, taking into account any discounts or premiums associated with the
liability.
The carrying value is important in financial reporting as it provides
information about the current value of assets and liabilities. It is used to
determine the net worth of a company, assess the financial health of an
organization, and calculate various financial ratios.