Balance Sheet as of 31st March 2016:

Assets:
- Cash and Bank: $X
- Debtors: $Y
- Stock: $Z
- Furniture: $A
- Land and Building: $B
- Investments: $C
- Total Assets: $M

Liabilities:
- Creditors: $D
- Bank Loan: $E
- Capital: $F
- Reserve: $G
- Total Liabilities: $N

Explanation:

The given balance sheet represents the financial position of the firm as of 31st March 2016. It consists of two main sections: Assets and Liabilities. The assets represent what the firm owns, while liabilities represent what the firm owes.

Assets:
- Cash and Bank: This represents the amount of cash and bank balances held by the firm. It includes physical cash as well as funds held in bank accounts.
- Debtors: This represents the amount of money owed to the firm by its customers or clients. It includes outstanding invoices or pending payments.
- Stock: This represents the value of goods or inventory held by the firm for sale. It includes finished goods, work in progress, and raw materials.
- Furniture: This represents the value of furniture and fixtures owned by the firm. It includes items such as desks, chairs, and cabinets.
- Land and Building: This represents the value of land and buildings owned by the firm. It includes the office premises, warehouses, or any other property owned.
- Investments: This represents any investments made by the firm in other companies or financial instruments.
- Total Assets: This represents the sum of all the individual asset items and gives the total value of the firm's assets.

Liabilities:
- Creditors: This represents the amount of money owed by the firm to its suppliers or vendors. It includes pending bills or invoices.
- Bank Loan: This represents any loans taken by the firm from banks or financial institutions.
- Capital: This represents the capital invested by the partners in the firm. In this case, partner C and partner D have invested their capital in the partnership.
- Reserve: This represents any accumulated profits or reserves of the firm.
- Total Liabilities: This represents the sum of all the individual liability items and gives the total value of the firm's liabilities.

The balance sheet is prepared to provide a snapshot of the firm's financial position at a specific point in time. It helps in assessing the firm's solvency, liquidity, and overall financial health. The balance sheet is also useful for making financial decisions and evaluating the performance of the firm.