diff --git a/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/LoanWithWaiveInterestAndWriteOffIntegrationTest.java b/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/LoanWithWaiveInterestAndWriteOffIntegrationTest.java
index afc225d94..fab3ce585 100644
--- a/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/LoanWithWaiveInterestAndWriteOffIntegrationTest.java
+++ b/mifosng-provider/src/integrationTest/java/org/mifosplatform/integrationtests/LoanWithWaiveInterestAndWriteOffIntegrationTest.java
@@ -7,6 +7,7 @@ package org.mifosplatform.integrationtests;
 
 import java.util.HashMap;
 
+import org.junit.Assert;
 import org.junit.Before;
 import org.junit.Test;
 import org.mifosplatform.integrationtests.common.ClientHelper;
@@ -116,6 +117,56 @@ public class LoanWithWaiveInterestAndWriteOffIntegrationTest {
 
     }
 
+    @Test
+    public void checkClientLoan_WRITTEN_OFF() {
+        // CREATE CLIENT
+        final Integer clientID = ClientHelper.createClient(this.requestSpec, this.responseSpec, this.DATE_OF_JOINING);
+        ClientHelper.verifyClientCreatedOnServer(this.requestSpec, this.responseSpec, clientID);
+
+        // CREATE LOAN PRODUCT
+        final Integer loanProductID = createLoanProduct();
+        // APPLY FOR LOAN
+        final Integer loanID = applyForLoanApplication(clientID, loanProductID);
+
+        HashMap loanStatusHashMap = LoanStatusChecker.getStatusOfLoan(this.requestSpec, this.responseSpec, loanID);
+        LoanStatusChecker.verifyLoanIsPending(loanStatusHashMap);
+
+        System.out.println("-----------------------------------APPROVE LOAN-----------------------------------------");
+        loanStatusHashMap = this.loanTransactionHelper.approveLoan("28 September 2010", loanID);
+        LoanStatusChecker.verifyLoanIsApproved(loanStatusHashMap);
+        LoanStatusChecker.verifyLoanIsWaitingForDisbursal(loanStatusHashMap);
+
+        // DISBURSE
+        loanStatusHashMap = this.loanTransactionHelper.disburseLoan(this.DISBURSEMENT_DATE, loanID);
+        System.out.println("DISBURSE " + loanStatusHashMap);
+        LoanStatusChecker.verifyLoanIsActive(loanStatusHashMap);
+
+        // MAKE REPAYMENTS
+        final float repayment_with_interest = 680.0f;
+
+        this.loanTransactionHelper.verifyRepaymentScheduleEntryFor(1, 4000.0F, loanID);
+        this.loanTransactionHelper.makeRepayment("1 January 2011", repayment_with_interest, loanID);
+
+        HashMap toLoanSummaryAfter = this.loanTransactionHelper.getLoanSummary(requestSpec, responseSpec, loanID);
+        Assert.assertTrue("Checking for Principal paid ",
+                new Float("500.0").compareTo(new Float(String.valueOf(toLoanSummaryAfter.get("principalPaid")))) == 0);
+        Assert.assertTrue("Checking for interestPaid paid ",
+                new Float("180.0").compareTo(new Float(String.valueOf(toLoanSummaryAfter.get("interestPaid")))) == 0);
+        Assert.assertTrue("Checking for total paid ",
+                new Float("680.0").compareTo(new Float(String.valueOf(toLoanSummaryAfter.get("totalRepayment")))) == 0);
+
+        // WRITE OFF LOAN AND CHECK ACCOUNT IS CLOSED
+        LoanStatusChecker.verifyLoanAccountIsClosed(this.loanTransactionHelper.writeOffLoan("1 January 2011", loanID));
+        toLoanSummaryAfter = this.loanTransactionHelper.getLoanSummary(requestSpec, responseSpec, loanID);
+        Assert.assertTrue("Checking for Principal written off ",
+                new Float("4000.0").compareTo(new Float(String.valueOf(toLoanSummaryAfter.get("principalWrittenOff")))) == 0);
+        Assert.assertTrue("Checking for interestPaid written off ",
+                new Float("1440.0").compareTo(new Float(String.valueOf(toLoanSummaryAfter.get("interestWrittenOff")))) == 0);
+        Assert.assertTrue("Checking for total written off ",
+                new Float("5440.0").compareTo(new Float(String.valueOf(toLoanSummaryAfter.get("totalWrittenOff")))) == 0);
+
+    }
+
     private Integer createLoanProduct() {
         System.out.println("------------------------------CREATING NEW LOAN PRODUCT ---------------------------------------");
         final String loanProductJSON = new LoanProductTestBuilder().withPrincipal(this.LP_PRINCIPAL).withRepaymentTypeAsMonth()
diff --git a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
index 41cb757a5..302636b98 100755
--- a/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
+++ b/mifosng-provider/src/main/java/org/mifosplatform/portfolio/loanaccount/domain/Loan.java
@@ -3142,8 +3142,8 @@ public class Loan extends AbstractPersistable<Long> {
 
             LocalDateTime createdDate = DateUtils.getLocalDateTimeOfTenant();
             loanTransaction = LoanTransaction.writeoff(this, getOffice(), writtenOffOnLocalDate, txnExternalId, createdDate, currentUser);
-            final boolean isLastTransaction = isChronologicallyLatestTransaction(loanTransaction, this.loanTransactions);
-            if (!isLastTransaction) {
+            LocalDate lastTransactionDate = getLastUserTransactionDate();
+            if (lastTransactionDate.isAfter(writtenOffOnLocalDate)) {
                 final String errorMessage = "The date of the writeoff transaction must occur on or before previous transactions.";
                 throw new InvalidLoanStateTransitionException("writeoff", "must.occur.on.or.after.other.transaction.dates", errorMessage,
                         writtenOffOnLocalDate);