Trial Balance as on 31-3-2013:

| Particulars | Debit (₹) | Credit (₹) |
|--------------------|--------------|--------------|
| Capital | 16,800 | |
| Opening Stock | 2,10,000 | |
| Sales Returns | | 30,000 |
| Purchase Returns | 20,000 | |
| Drawing | 50,000 | |
| Discount Allowed | 7,000 | |
| Salaries | 12,000 | |
| Total | 3,15,800 | 3,15,800 |

Explanation:

1. Capital:
- Opening balance of capital as on 31-3-2013 is ₹16,800.

2. Opening Stock:
- The value of the stock available at the beginning of the accounting period is ₹2,10,000.

3. Sales Returns:
- The amount of goods returned by customers during the accounting period is ₹30,000.

4. Purchase Returns:
- The amount of goods returned to suppliers during the accounting period is ₹20,000.

5. Drawing:
- The amount of cash or goods withdrawn by the owner for personal use during the accounting period is ₹50,000.

6. Discount Allowed:
- The amount of discount given to customers during the accounting period is ₹7,000.

7. Salaries:
- The total wages and salaries paid to employees during the accounting period is ₹12,000.

The trial balance is a statement that lists all the ledger account balances and their respective debit or credit balances. It is prepared to ensure that the total debits equal the total credits, thereby verifying the accuracy of the accounting records.

In this case, the trial balance is prepared as on 31-3-2013 using the given balances. The debit and credit balances are listed accordingly. The total of the debit column should match the total of the credit column, as shown in the trial balance.

The trial balance helps in identifying any errors or discrepancies in the recording of transactions. If the trial balance does not balance, it indicates that there are errors in the accounting records that need to be identified and rectified. However, if the trial balance balances, it does not guarantee the absence of errors, as some errors may still cancel each other out and result in a balanced trial balance.

It is important to note that the trial balance is just a tool for verifying the accuracy of the accounting records and does not provide information on the financial performance or position of the business. Further analysis and interpretation of the financial data are required for a comprehensive understanding of the business's financial health.