diff --git a/erpnext/accounts/report/trial_balance_for_party/trial_balance_for_party.py b/erpnext/accounts/report/trial_balance_for_party/trial_balance_for_party.py
index d843dfd3ce3..70effce5684 100644
--- a/erpnext/accounts/report/trial_balance_for_party/trial_balance_for_party.py
+++ b/erpnext/accounts/report/trial_balance_for_party/trial_balance_for_party.py
@@ -107,6 +107,7 @@ def get_opening_balances(filters):
 		select party, sum(debit) as opening_debit, sum(credit) as opening_credit
 		from `tabGL Entry`
 		where company=%(company)s
+			and is_cancelled=0
 			and ifnull(party_type, '') = %(party_type)s and ifnull(party, '') != ''
 			and (posting_date < %(from_date)s or ifnull(is_opening, 'No') = 'Yes')
 			{account_filter}
@@ -133,6 +134,7 @@ def get_balances_within_period(filters):
 		select party, sum(debit) as debit, sum(credit) as credit
 		from `tabGL Entry`
 		where company=%(company)s
+			and is_cancelled = 0
 			and ifnull(party_type, '') = %(party_type)s and ifnull(party, '') != ''
 			and posting_date >= %(from_date)s and posting_date <= %(to_date)s
 			and ifnull(is_opening, 'No') = 'No'