The remaining \(200 - 160 = 40\ \text{J}\) is not destroyed; it is wasted mainly as heat and sound through friction in the moving parts, which is why no real machine reaches \(100\%\) efficiency.
The value \(250\ \text{J}\) comes from dividing by \(0.8\) instead of multiplying, and it should be rejected immediately on physical grounds: an output larger than the input would mean the machine creates energy, which violates the conservation of energy. Use that check every time. In any efficiency question the useful output must be smaller than the input, so the correct operation is always the one that reduces the number.