diff --git a/erpnext/accounts/doctype/gl_entry/gl_entry.py b/erpnext/accounts/doctype/gl_entry/gl_entry.py
index 5c35692314a484f79cda556be02f83703936611e..d0496387a4a53e1f0d69bf2e075200110f55f285 100644
--- a/erpnext/accounts/doctype/gl_entry/gl_entry.py
+++ b/erpnext/accounts/doctype/gl_entry/gl_entry.py
@@ -138,7 +138,7 @@ class GLEntry(Document):
 			if not self.get(k):
 				frappe.throw(_("{0} is required").format(_(self.meta.get_label(k))))
 
-		if not (self.party_type and self.party):
+		if not self.is_cancelled and not (self.party_type and self.party):
 			account_type = frappe.get_cached_value("Account", self.account, "account_type")
 			if account_type == "Receivable":
 				frappe.throw(