• •GHI Corp found that an extra capital of $13,000 paid into the bank had been credited to Sales.
  •Goods taken for own use worth $1,250 had been debited to General Expenses.
  •Private insurance of $135 had been debited to the Insurance account.
  •A purchase of goods from C. Evans for $960 was entered in the books as $860.
  •Cash banked of $370 was credited to the bank column and debited to the cash column in the cash book.
  •Cash drawings of $590 had been credited to the bank column of the cash book.
  •Returns inwards of $240 from H. Moore had been entered in error in J. Brooks’s account.
  •A sale of machinery for $2,500 had been credited to Office Expenses.
  Requirement: Prepare the correcting journal entries and explain how these adjustments will affect the liquidity ratios.