a)    Treating a fixed asset as an expense in the profit and loss account will result in profit being understated by the €25,000.  In the balance sheet both fixed assets and capital will be understated by €25,000. 

b)    Treating repairs as capital expenditure will result in the profit being overstated by €5,000 in the profit and loss account.  In the balance sheet both fixed assets and capital will be overstated by €5,000.