diff --git a/CRM/Event/Form/ParticipantFeeSelection.php b/CRM/Event/Form/ParticipantFeeSelection.php
index aab0a8375da3..e4ec1597137a 100644
--- a/CRM/Event/Form/ParticipantFeeSelection.php
+++ b/CRM/Event/Form/ParticipantFeeSelection.php
@@ -239,7 +239,7 @@ public function postProcess() {
 
     $feeBlock = $this->_values['fee'];
     $lineItems = $this->_values['line_items'];
-    CRM_Price_BAO_LineItem::changeFeeSelections($params, $this->_participantId, 'participant', $this->_contributionId, $feeBlock, $lineItems, $this->_paidAmount);
+    CRM_Price_BAO_LineItem::changeFeeSelections($params, $this->_participantId, 'participant', $this->_contributionId, $feeBlock, $lineItems);
     $this->contributionAmt = CRM_Core_DAO::getFieldValue('CRM_Contribute_BAO_Contribution', $this->_contributionId, 'total_amount');
     // email sending
     if (!empty($params['send_receipt'])) {
diff --git a/CRM/Member/Form/Membership.php b/CRM/Member/Form/Membership.php
index e6f5c984ee69..dfba06582f2e 100644
--- a/CRM/Member/Form/Membership.php
+++ b/CRM/Member/Form/Membership.php
@@ -1741,8 +1741,7 @@ protected function updateContributionOnMembershipTypeChange($inputParams, $membe
 
       // add price field information in $inputParams
       self::addPriceFieldByMembershipType($inputParams, $priceSetDetails['fields'], $membership->membership_type_id);
-      // paid amount
-      $paidAmount = CRM_Utils_Array::value('paid', CRM_Contribute_BAO_Contribution::getPaymentInfo($membership->id, 'membership'));
+
       // update related contribution and financial records
       CRM_Price_BAO_LineItem::changeFeeSelections(
         $inputParams,
@@ -1750,7 +1749,7 @@ protected function updateContributionOnMembershipTypeChange($inputParams, $membe
         'membership',
         $contributionID,
         $priceSetDetails['fields'],
-        $lineItems, $paidAmount
+        $lineItems
       );
       CRM_Core_Session::setStatus(ts('Associated contribution is updated on membership type change.'), ts('Success'), 'success');
     }
diff --git a/CRM/Price/BAO/LineItem.php b/CRM/Price/BAO/LineItem.php
index 2b782e48f804..dd4f1cae6a78 100644
--- a/CRM/Price/BAO/LineItem.php
+++ b/CRM/Price/BAO/LineItem.php
@@ -614,7 +614,6 @@ public static function getLineItemArray(&$params, $entityId = NULL, $entityTable
    * @param int $contributionId
    * @param $feeBlock
    * @param array $lineItems
-   * @param $paidAmount
    *
    */
   public static function changeFeeSelections(
@@ -623,8 +622,7 @@ public static function changeFeeSelections(
     $entity,
     $contributionId,
     $feeBlock,
-    $lineItems,
-    $paidAmount
+    $lineItems
   ) {
     $entityTable = "civicrm_" . $entity;
     CRM_Price_BAO_PriceSet::processAmount($feeBlock,
@@ -716,7 +714,7 @@ public static function changeFeeSelections(
     if (!empty($amountLevel)) {
       $updateAmountLevel = CRM_Core_DAO::VALUE_SEPARATOR . implode(CRM_Core_DAO::VALUE_SEPARATOR, $amountLevel) . $displayParticipantCount . CRM_Core_DAO::VALUE_SEPARATOR;
     }
-    $trxn = $lineItemObj->_recordAdjustedAmt($updatedAmount, $paidAmount, $contributionId, $taxAmount, $updateAmountLevel);
+    $trxn = $lineItemObj->_recordAdjustedAmt($updatedAmount, $contributionId, $taxAmount, $updateAmountLevel);
 
     $contributionCompletedStatusID = CRM_Core_PseudoConstant::getKey('CRM_Contribute_DAO_Contribution', 'contribution_status_id', 'Completed');
     if (!empty($financialItemsArray)) {
@@ -1094,13 +1092,9 @@ protected function _getRelatedCancelFinancialTrxn($financialItemID) {
    *
    * @return bool|\CRM_Core_BAO_FinancialTrxn
    */
-  protected function _recordAdjustedAmt($updatedAmount, $paidAmount, $contributionId, $taxAmount = NULL, $updateAmountLevel = NULL) {
-    $pendingAmount = CRM_Core_BAO_FinancialTrxn::getBalanceTrxnAmt($contributionId);
-    $pendingAmount = CRM_Utils_Array::value('total_amount', $pendingAmount, 0);
+  protected function _recordAdjustedAmt($updatedAmount, $contributionId, $taxAmount = NULL, $updateAmountLevel = NULL) {
+    $paidAmount = CRM_Core_BAO_FinancialTrxn::getTotalPayments($contributionId);
     $balanceAmt = $updatedAmount - $paidAmount;
-    if ($paidAmount != $pendingAmount) {
-      $balanceAmt -= $pendingAmount;
-    }
 
     $contributionStatuses = CRM_Contribute_PseudoConstant::contributionStatus(NULL, 'name');
     $partiallyPaidStatusId = array_search('Partially paid', $contributionStatuses);
diff --git a/tests/phpunit/CRM/Event/BAO/CRM19273Test.php b/tests/phpunit/CRM/Event/BAO/CRM19273Test.php
index 0675353f7c44..bf2e215bc929 100644
--- a/tests/phpunit/CRM/Event/BAO/CRM19273Test.php
+++ b/tests/phpunit/CRM/Event/BAO/CRM19273Test.php
@@ -245,6 +245,20 @@ public function testCRM19273() {
 
   }
 
+  /**
+   * CRM-21245: Test that Contribution status doesn't changed to 'Pending Refund' from 'Partially Paid' if the partially paid amount is lower then newly selected fee amount
+   */
+  public function testCRM21245() {
+    $this->registerParticipantAndPay(50);
+    $partiallyPaidContribuitonStatus = CRM_Core_PseudoConstant::getKey('CRM_Contribute_BAO_Contribution', 'contribution_status_id', 'Partially paid');
+    $this->assertEquals( $this->callAPISuccessGetValue('Contribution', array('id' => $this->contributionID, 'return' => 'contribution_status_id')), $partiallyPaidContribuitonStatus);
+
+    $priceSetParams['price_1'] = 3;
+    $lineItem = CRM_Price_BAO_LineItem::getLineItems($this->_participantId, 'participant');
+    CRM_Price_BAO_LineItem::changeFeeSelections($priceSetParams, $this->_participantId, 'participant', $this->_contributionId, $this->_feeBlock, $lineItem);
+    $this->assertEquals($this->callAPISuccessGetValue('Contribution', array('id' => $this->_contributionId, 'return' => 'contribution_status_id')), $partiallyPaidContribuitonStatus);
+  }
+
   /**
    * Test that proper financial items are recorded for cancelled line items
    */