Transaction	Error	Correction Needed
Extra capital of $20,000	Credited to Sales	Should be credited to Capital
Goods for own use $1,600	Debited to General Expenses	Should be debited to Drawings
Private insurance $120	Debited to Insurance	Should be debited to Drawings
Purchase from E. Clark $1,050	Entered as $950	Should be corrected to $1,050
Cash banked $620	Credited to bank column, debited to cash column	Should be corrected to bank column
Cash drawings $700	Credited to bank column	Should be debited to Drawings
Returns inwards $340 from K. Walker	Entered in error in J. Thomas’s account	Should be corrected to K. Walker account
Sale of equipment $3,100	Credited to Office Expenses	Should be credited to Sales
Requirement: Create the correcting journal entries and assess the impact on the current liabilities.