If you are definitely referring to a folder and not a file, then why not remove the documents from within the folder. Delete that folder and create a fresh folder & then return the documents back into the folder.
Sounds like the folder has somehow turned into a file. Perhaps a hidden file extension such as .psd accidentally added to the name of the folder (or combination of extensions.)

As suggested earlier, might be easier to simply create a new fresh folder.

Many thanks for prompt reply, but unfortunately it didn't work.
Have tried out yr method twice over, to no avail. The document gets saved und
er the Photoshop emblem icon.

Kind regards.

Joe