diff --git a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.json b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.json
index 6479853..93ef217 100644
--- a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.json
+++ b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.json
@@ -13,8 +13,10 @@
   "column_break_3",
   "company",
   "posting_date",
-  "is_term_loan",
   "rate_of_interest",
+  "payroll_payable_account",
+  "is_term_loan",
+  "repay_from_salary",
   "payment_details_section",
   "due_date",
   "pending_principal_amount",
@@ -243,15 +245,31 @@
    "label": "Total Penalty Paid",
    "options": "Company:company:default_currency",
    "read_only": 1
+  },
+  {
+   "depends_on": "eval:doc.repay_from_salary",
+   "fieldname": "payroll_payable_account",
+   "fieldtype": "Link",
+   "label": "Payroll Payable Account",
+   "mandatory_depends_on": "eval:doc.repay_from_salary",
+   "options": "Account"
+  },
+  {
+   "default": "0",
+   "fetch_from": "against_loan.repay_from_salary",
+   "fieldname": "repay_from_salary",
+   "fieldtype": "Check",
+   "label": "Repay From Salary"
   }
  ],
  "index_web_pages_for_search": 1,
  "is_submittable": 1,
  "links": [],
- "modified": "2021-04-19 18:10:00.935364",
+ "modified": "2022-01-06 01:51:06.707782",
  "modified_by": "Administrator",
  "module": "Loan Management",
  "name": "Loan Repayment",
+ "naming_rule": "Expression (old style)",
  "owner": "Administrator",
  "permissions": [
   {
@@ -287,5 +305,6 @@
  ],
  "sort_field": "modified",
  "sort_order": "DESC",
+ "states": [],
  "track_changes": 1
 }
\ No newline at end of file
diff --git a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
index 5922e4f..8ffaf63 100644
--- a/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
+++ b/erpnext/loan_management/doctype/loan_repayment/loan_repayment.py
@@ -241,74 +241,79 @@
 		else:
 			remarks = _("Repayment against Loan: ") + self.against_loan
 
-		if not loan_details.repay_from_salary:
-			if self.total_penalty_paid:
-				gle_map.append(
-					self.get_gl_dict({
-						"account": loan_details.loan_account,
-						"against": loan_details.payment_account,
-						"debit": self.total_penalty_paid,
-						"debit_in_account_currency": self.total_penalty_paid,
-						"against_voucher_type": "Loan",
-						"against_voucher": self.against_loan,
-						"remarks": _("Penalty against loan:") + self.against_loan,
-						"cost_center": self.cost_center,
-						"party_type": self.applicant_type,
-						"party": self.applicant,
-						"posting_date": getdate(self.posting_date)
-					})
-				)
+		if self.repay_from_salary:
+			payment_account = self.payroll_payable_account
+		else:
+			payment_account = loan_details.payment_account
 
-				gle_map.append(
-					self.get_gl_dict({
-						"account": loan_details.penalty_income_account,
-						"against": loan_details.payment_account,
-						"credit": self.total_penalty_paid,
-						"credit_in_account_currency": self.total_penalty_paid,
-						"against_voucher_type": "Loan",
-						"against_voucher": self.against_loan,
-						"remarks": _("Penalty against loan:") + self.against_loan,
-						"cost_center": self.cost_center,
-						"posting_date": getdate(self.posting_date)
-					})
-				)
-
-			gle_map.append(
-				self.get_gl_dict({
-					"account": loan_details.payment_account,
-					"against": loan_details.loan_account + ", " + loan_details.interest_income_account
-							+ ", " + loan_details.penalty_income_account,
-					"debit": self.amount_paid,
-					"debit_in_account_currency": self.amount_paid,
-					"against_voucher_type": "Loan",
-					"against_voucher": self.against_loan,
-					"remarks": remarks,
-					"cost_center": self.cost_center,
-					"posting_date": getdate(self.posting_date)
-				})
-			)
-
+		if self.total_penalty_paid:
 			gle_map.append(
 				self.get_gl_dict({
 					"account": loan_details.loan_account,
-					"party_type": loan_details.applicant_type,
-					"party": loan_details.applicant,
 					"against": loan_details.payment_account,
-					"credit": self.amount_paid,
-					"credit_in_account_currency": self.amount_paid,
+					"debit": self.total_penalty_paid,
+					"debit_in_account_currency": self.total_penalty_paid,
 					"against_voucher_type": "Loan",
 					"against_voucher": self.against_loan,
-					"remarks": remarks,
+					"remarks": _("Penalty against loan:") + self.against_loan,
+					"cost_center": self.cost_center,
+					"party_type": self.applicant_type,
+					"party": self.applicant,
+					"posting_date": getdate(self.posting_date)
+				})
+			)
+
+			gle_map.append(
+				self.get_gl_dict({
+					"account": loan_details.penalty_income_account,
+					"against": payment_account,
+					"credit": self.total_penalty_paid,
+					"credit_in_account_currency": self.total_penalty_paid,
+					"against_voucher_type": "Loan",
+					"against_voucher": self.against_loan,
+					"remarks": _("Penalty against loan:") + self.against_loan,
 					"cost_center": self.cost_center,
 					"posting_date": getdate(self.posting_date)
 				})
 			)
 
-			if gle_map:
-				make_gl_entries(gle_map, cancel=cancel, adv_adj=adv_adj, merge_entries=False)
+		gle_map.append(
+			self.get_gl_dict({
+				"account": payment_account,
+				"against": loan_details.loan_account + ", " + loan_details.interest_income_account
+						+ ", " + loan_details.penalty_income_account,
+				"debit": self.amount_paid,
+				"debit_in_account_currency": self.amount_paid,
+				"against_voucher_type": "Loan",
+				"against_voucher": self.against_loan,
+				"remarks": remarks,
+				"cost_center": self.cost_center,
+				"posting_date": getdate(self.posting_date)
+			})
+		)
+
+		gle_map.append(
+			self.get_gl_dict({
+				"account": loan_details.loan_account,
+				"party_type": loan_details.applicant_type,
+				"party": loan_details.applicant,
+				"against": payment_account,
+				"credit": self.amount_paid,
+				"credit_in_account_currency": self.amount_paid,
+				"against_voucher_type": "Loan",
+				"against_voucher": self.against_loan,
+				"remarks": remarks,
+				"cost_center": self.cost_center,
+				"posting_date": getdate(self.posting_date)
+			})
+		)
+
+		if gle_map:
+			make_gl_entries(gle_map, cancel=cancel, adv_adj=adv_adj, merge_entries=False)
 
 def create_repayment_entry(loan, applicant, company, posting_date, loan_type,
-	payment_type, interest_payable, payable_principal_amount, amount_paid, penalty_amount=None):
+	payment_type, interest_payable, payable_principal_amount, amount_paid, penalty_amount=None,
+	payroll_payable_account=None):
 
 	lr = frappe.get_doc({
 		"doctype": "Loan Repayment",
@@ -321,7 +326,8 @@
 		"interest_payable": interest_payable,
 		"payable_principal_amount": payable_principal_amount,
 		"amount_paid": amount_paid,
-		"loan_type": loan_type
+		"loan_type": loan_type,
+		"payroll_payable_account": payroll_payable_account
 	}).insert()
 
 	return lr
diff --git a/erpnext/payroll/doctype/salary_slip/salary_slip.py b/erpnext/payroll/doctype/salary_slip/salary_slip.py
index b035292..0ee3c7c 100644
--- a/erpnext/payroll/doctype/salary_slip/salary_slip.py
+++ b/erpnext/payroll/doctype/salary_slip/salary_slip.py
@@ -1138,15 +1138,17 @@
 			})
 
 	def make_loan_repayment_entry(self):
+		payroll_payable_account = get_payroll_payable_account(self.company, self.payroll_entry)
 		for loan in self.loans:
-			repayment_entry = create_repayment_entry(loan.loan, self.employee,
-				self.company, self.posting_date, loan.loan_type, "Regular Payment", loan.interest_amount,
-				loan.principal_amount, loan.total_payment)
+			if loan.total_payment:
+				repayment_entry = create_repayment_entry(loan.loan, self.employee,
+					self.company, self.posting_date, loan.loan_type, "Regular Payment", loan.interest_amount,
+					loan.principal_amount, loan.total_payment, payroll_payable_account=payroll_payable_account)
 
-			repayment_entry.save()
-			repayment_entry.submit()
+				repayment_entry.save()
+				repayment_entry.submit()
 
-			frappe.db.set_value("Salary Slip Loan", loan.name, "loan_repayment_entry", repayment_entry.name)
+				frappe.db.set_value("Salary Slip Loan", loan.name, "loan_repayment_entry", repayment_entry.name)
 
 	def cancel_loan_repayment_entry(self):
 		for loan in self.loans:
@@ -1380,3 +1382,11 @@
 		],
 		as_dict=1,
 	)
+
+def get_payroll_payable_account(company, payroll_entry):
+	if payroll_entry:
+		payroll_payable_account = frappe.db.get_value('Payroll Entry', payroll_entry, 'payroll_payable_account')
+	else:
+		payroll_payable_account = frappe.db.get_value('Company', company, 'default_payroll_payable_account')
+
+	return payroll_payable_account
\ No newline at end of file
diff --git a/erpnext/payroll/doctype/salary_slip/test_salary_slip.py b/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
index 6e8fae0..c0e005a 100644
--- a/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
+++ b/erpnext/payroll/doctype/salary_slip/test_salary_slip.py
@@ -380,7 +380,7 @@
 		make_salary_structure("Test Loan Repayment Salary Structure", "Monthly", employee=applicant, currency='INR',
 			payroll_period=payroll_period)
 
-		frappe.db.sql("delete from tabLoan")
+		frappe.db.sql("delete from tabLoan where applicant = 'test_loan_repayment_salary_slip@salary.com'")
 		loan = create_loan(applicant, "Car Loan", 11000, "Repay Over Number of Periods", 20, posting_date=add_months(nowdate(), -1))
 		loan.repay_from_salary = 1
 		loan.submit()