Transaction	Error	Correction Needed
Extra capital of $16,000	Credited to Sales	Should be credited to Capital
Goods for own use $1,400	Debited to General Expenses	Should be debited to Drawings
Private insurance $115	Debited to Insurance	Should be debited to Drawings
Purchase from S. White $960	Entered as $860	Should be corrected to $960
Cash banked $580	Credited to bank column, debited to cash column	Should be corrected to bank column
Cash drawings $740	Credited to bank column	Should be debited to Drawings
Returns inwards $350 from J. Brown	Entered in error in M. Lee’s account	Should be corrected to J. Brown account
Sale of equipment $2,700	Credited to Office Expenses	Should be credited to Sales
Requirement: Record the journal entries to correct these errors and discuss the impact on the financial ratios.