Explanation:

Incorrect Accounting Treatment:
- The minor repairs made to the building should not have been debited to the building account.
- Building accounts are meant for the initial cost of the building and major improvements or renovations that increase the life or value of the building.
- Minor repairs, on the other hand, are considered maintenance expenses and should be expensed in the period they occur.

Correct Accounting Treatment:
- Minor repairs should have been debited to a repairs and maintenance expense account.
- This expense would then be reflected on the income statement as part of the operating expenses for the period.
- By debiting the repairs to the building account, the company incorrectly capitalized the expense, which could overstate the value of the building on the balance sheet.

Impact on Financial Statements:
- By debiting the minor repairs to the building account, the company would have overstated the value of the building on the balance sheet.
- This could mislead investors and other stakeholders about the true value of the building and the company's financial health.
- Additionally, capitalizing minor repairs could also impact the company's profitability as it would not accurately reflect the true expenses incurred during the period.

Recommendation:
- It is important for the company to correct this error by reclassifying the minor repairs as repairs and maintenance expenses.
- Proper accounting treatment will ensure accurate financial reporting and provide stakeholders with a true picture of the company's financial position.