diff --git a/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/AccrualBasedAccountingProcessorForLoan.java b/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/AccrualBasedAccountingProcessorForLoan.java
index 29feeba36..e75944f68 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/AccrualBasedAccountingProcessorForLoan.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/AccrualBasedAccountingProcessorForLoan.java
@@ -569,8 +569,8 @@ public class AccrualBasedAccountingProcessorForLoan implements AccountingProcess
         final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
-        this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, AccrualAccountsForLoan.LOAN_PORTFOLIO.getValue(),
-                AccrualAccountsForLoan.OVERPAYMENT.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
+        this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, AccrualAccountsForLoan.OVERPAYMENT.getValue(),
+                AccrualAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
                 refundAmount, isReversal);
     }
 
diff --git a/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/CashBasedAccountingProcessorForLoan.java b/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/CashBasedAccountingProcessorForLoan.java
index f2947463a..2e9589496 100644
--- a/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/CashBasedAccountingProcessorForLoan.java
+++ b/fineract-provider/src/main/java/org/apache/fineract/accounting/journalentry/service/CashBasedAccountingProcessorForLoan.java
@@ -481,8 +481,8 @@ public class CashBasedAccountingProcessorForLoan implements AccountingProcessorF
         final boolean isReversal = loanTransactionDTO.isReversed();
         final Long paymentTypeId = loanTransactionDTO.getPaymentTypeId();
 
-        this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.LOAN_PORTFOLIO.getValue(),
-                CashAccountsForLoan.OVERPAYMENT.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
+        this.helper.createJournalEntriesAndReversalsForLoan(office, currencyCode, CashAccountsForLoan.OVERPAYMENT.getValue(),
+                CashAccountsForLoan.FUND_SOURCE.getValue(), loanProductId, paymentTypeId, loanId, transactionId, transactionDate,
                 refundAmount, isReversal);
     }
 
diff --git a/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java b/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java
index d1a0ba88d..45091e9f4 100644
--- a/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java
+++ b/integration-tests/src/test/java/org/apache/fineract/integrationtests/ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest.java
@@ -307,9 +307,9 @@ public class ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest {
         Assertions.assertNotNull(resourceId);
 
         this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, creditBalanceRefundDate,
-                new JournalEntry(refund, JournalEntry.TransactionType.DEBIT));
-        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, creditBalanceRefundDate,
                 new JournalEntry(refund, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, creditBalanceRefundDate,
+                new JournalEntry(refund, JournalEntry.TransactionType.DEBIT));
 
     }
 
@@ -328,9 +328,9 @@ public class ClientLoanCreditBalanceRefundandRepaymentTypeIntegrationTest {
         Assertions.assertNotNull(resourceId);
 
         this.journalEntryHelper.checkJournalEntryForAssetAccount(assetAccount, creditBalanceRefundDate,
-                new JournalEntry(refund, JournalEntry.TransactionType.DEBIT));
-        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, creditBalanceRefundDate,
                 new JournalEntry(refund, JournalEntry.TransactionType.CREDIT));
+        this.journalEntryHelper.checkJournalEntryForLiabilityAccount(overpaymentAccount, creditBalanceRefundDate,
+                new JournalEntry(refund, JournalEntry.TransactionType.DEBIT));
 
     }