diff --git a/erpnext/accounts/doctype/gl_entry/gl_entry.py b/erpnext/accounts/doctype/gl_entry/gl_entry.py
index 7e4b3f29b1b54234d5461555a2fbb8ac0ef8d984..7df23e102cfbc3ac18e9bd9ac61613bb84131e22 100644
--- a/erpnext/accounts/doctype/gl_entry/gl_entry.py
+++ b/erpnext/accounts/doctype/gl_entry/gl_entry.py
@@ -129,7 +129,7 @@ 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(