Can I have committed fraud?

I have been building for a client and took a payment under the impression I needed to pay for her kitchen in full. It turned out that I only needed to pay 50% of the work top and 25% of the kitchen for it to get under way. I thought that this was great because I could use the remaining funds elsewhere on the project. Subsequently the job has over run financially and there are no longer funds to complete the payment on the kitchen and she is saying that because she gave me those money's specifically to buy the kitchen then I have committed fraud. This was never my intent but I am not sure where this leaves me. My company is ltd does this offer me any protection.