Incorrect Debit Entry in Motor Car Account:
The error occurred when R's. 9060 paid for repairs of the motor car was debited to the motor car account as R's. 7060. This means that an amount of R's. 2000 was incorrectly debited to the motor car account.

Impact of the Error:
This error has led to an overstatement of expenses in the motor car account by R's. 2000. As a result, the motor car account will show higher expenses than the actual amount spent on repairs.

Correction of the Error:
To correct this error, a journal entry needs to be made to reverse the incorrect debit entry and record the correct amount. The correct journal entry will be:
- Debit: Repairs Account - R's. 2000
- Credit: Motor Car Account - R's. 2000

Explanation:
The debit to the repairs account will reflect the actual amount spent on repairs, while the credit to the motor car account will reduce the expenses recorded incorrectly. This will ensure that the financial statements accurately reflect the expenses incurred on the motor car.

Importance of Accurate Accounting:
Accurate accounting is essential to ensure that financial statements provide a true and fair view of the company's financial position. Errors like the one mentioned can distort the financial statements and mislead stakeholders. Therefore, it is crucial to promptly identify and rectify such errors to maintain the integrity of the accounting records.