suspenseaccounts

hi Sir
Please I need help:

1- A company’s Statement of Profit or Loss for the year ended 31 December 2005 showed a net profit of $200,640. It was later found that $43,200 paid for the purchase of a motor van had been debited to the motor expenses account. It is the company’s policy to depreciate motor vans at 25% per year on the straight line basis, with a full year’s charge in the year of acquisition.
What would the net profit be after adjusting for this error?

I considered that $43200 as expenses have already been deducted from the profit $200640. But because It’s has not been considered as an asset, we didn’t remove the depreciation.
I just deducted the depreciation.

$200640 – (£43200*25%) to get the the net profit be after adjusting for this error .
I dont understand the answer.

2- In October 2006 James sold some goods on sale or return terms for $2,500. Their cost to James was $1,500. The transaction has been treated as a credit sale in James’s financial statements for the year ended 31 October 2006. In November 2006 the customer accepted half of the goods and returned the other half in good condition.

What adjustments, if any, should be made to the financial statements?

A Sales and receivables should be reduced by $2,500, and closing inventory increased by $1,500.

B Sales and receivables should be reduced by $1,250, and closing inventory increased by $750

C Sales and receivables should be reduced by $2,500, with no adjustment to closing inventory

D No adjustment is necessary

I got B as it’s the half.