Thanks for all your replies. I am not sure why there have to be two sets of log files for each server. I mean if there is a need to debug on any server(eg: CMS) which file to be looked for and what is the purpose of the other one..
Not sure. But looks like this could be a support question. if any one has any other information that would be great and helpful. otherwise, i'll reachout to SAP support
thanks