The following is the schedule of balances as on 31.3.20?

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Explanation of Schedule of Balances as on 31.3.20

Opening Balance:

The opening balance refers to the amount of funds or assets available at the beginning of the accounting period, in this case, as on 31.3.20.

Transactions:

This section includes all the financial activities that occurred during the accounting period, such as purchases, sales, expenses, and investments.

Additions:

Additions represent any increases in the balance sheet items, such as additional investments, loans, or income received during the period.

Deletions:

Deletions refer to any reductions in the balance sheet items, such as repayments of loans, expenses incurred, or assets disposed of during the period.

Closing Balance:

The closing balance is the total amount of funds or assets remaining at the end of the accounting period, in this case, as on 31.3.20. It is calculated by adding the opening balance, transactions, and additions, and then subtracting the deletions.

Importance of Schedule of Balances:

The schedule of balances provides a snapshot of the financial position of an entity at a specific point in time.
It helps in analyzing the performance and liquidity of the organization by showing the changes in assets, liabilities, and equity over the accounting period.
It is essential for decision-making, financial reporting, and compliance with regulatory requirements.