diff --git a/hrms/payroll/doctype/payroll_entry/payroll_entry.py b/hrms/payroll/doctype/payroll_entry/payroll_entry.py
index f2488b858f..e31b9d59f9 100644
--- a/hrms/payroll/doctype/payroll_entry/payroll_entry.py
+++ b/hrms/payroll/doctype/payroll_entry/payroll_entry.py
@@ -923,7 +923,9 @@ def make_bank_entry(self, for_withheld_salaries=False):
 
 					salary_slip_total -= salary_detail.amount
 
-			salary_slip_total -= flt(salary_detail.get("total_loan_repayment"))
+		unique_salary_slips = {slip["name"]: slip for slip in salary_slips}.values()
+		total_loan_repayment = sum(flt(slip.get("total_loan_repayment", 0)) for slip in unique_salary_slips)
+		salary_slip_total -= total_loan_repayment
 
 		bank_entry = None
 		if salary_slip_total > 0:
diff --git a/hrms/payroll/doctype/payroll_entry/test_payroll_entry.py b/hrms/payroll/doctype/payroll_entry/test_payroll_entry.py
index 2a5acdaee0..ef0e35d755 100644
--- a/hrms/payroll/doctype/payroll_entry/test_payroll_entry.py
+++ b/hrms/payroll/doctype/payroll_entry/test_payroll_entry.py
@@ -5,7 +5,7 @@
 
 import frappe
 from frappe.tests.utils import FrappeTestCase, change_settings
-from frappe.utils import add_days, add_months, cstr
+from frappe.utils import add_days, add_months, cstr, flt
 
 import erpnext
 from erpnext.accounts.utils import get_fiscal_year, getdate, nowdate
@@ -749,9 +749,34 @@ def test_loan_repayment_from_salary(self):
 			total_loan_repayment=loan.monthly_repayment_amount,
 		)
 
+		salary_slip_name = frappe.db.get_value("Salary Slip", {"payroll_entry": payroll_entry.name}, "name")
+		salary_slip = frappe.get_doc("Salary Slip", salary_slip_name)
+		payroll_entry.reload()
+
+		initial_gross_pay = flt(salary_slip.gross_pay) - flt(salary_slip.total_deduction)
+		loan_repayment_amount = flt(salary_slip.total_loan_repayment)
+		expected_bank_entry_amount = initial_gross_pay - loan_repayment_amount
+
 		payroll_entry.make_bank_entry()
 		submit_bank_entry(payroll_entry.name)
 
+		bank_entry = frappe.db.sql(
+			"""
+			SELECT je.total_debit, je.total_credit
+			FROM `tabJournal Entry` je
+			INNER JOIN `tabJournal Entry Account` jea ON je.name = jea.parent
+			WHERE je.voucher_type = 'Bank Entry' AND jea.reference_type = 'Payroll Entry' AND jea.reference_name = %s
+			LIMIT 1
+			""",
+			payroll_entry.name,
+			as_dict=True,
+		)
+
+		total_debit = bank_entry[0].get("total_debit", 0)
+		total_credit = bank_entry[0].get("total_credit", 0)
+		self.assertEqual(total_debit, expected_bank_entry_amount)
+		self.assertEqual(total_credit, expected_bank_entry_amount)
+
 
 def get_payroll_entry(**args):
 	args = frappe._dict(args)