Joomla 2.5 :: Redirects Error 500 (Internal server Error) page when loging with invalid username and password

I faced this issue when migrating my local joomla 2.5 installation to test server. It works fine when logging with correct username and passwords. Then I have checked in error_log and found issue.

PHP Warning:  fopen(path_to_log/logs/error.php): failed to open stream: No such file or directory in 

new_server_path/libraries/joomla/log/loggers/formattedtext.php on line 248

Then I have checked in back end and changed path to log folder as follows.