diff --git a/packages/server/src/interfaces/Ledger.ts b/packages/server/src/interfaces/Ledger.ts
index 49419e680..4e021718a 100644
--- a/packages/server/src/interfaces/Ledger.ts
+++ b/packages/server/src/interfaces/Ledger.ts
@@ -4,6 +4,8 @@ export interface ILedger {
 
   getEntries(): ILedgerEntry[];
 
+  filter(cb: (entry: ILedgerEntry) => boolean): ILedger;
+
   whereAccountId(accountId: number): ILedger;
   whereContactId(contactId: number): ILedger;
   whereFromDate(fromDate: Date | string): ILedger;
diff --git a/packages/server/src/services/Accounting/LedgerContactStorage.ts b/packages/server/src/services/Accounting/LedgerContactStorage.ts
index 06b5f9269..f8a484122 100644
--- a/packages/server/src/services/Accounting/LedgerContactStorage.ts
+++ b/packages/server/src/services/Accounting/LedgerContactStorage.ts
@@ -1,9 +1,14 @@
 import { Service, Inject } from 'typedi';
 import async from 'async';
 import { Knex } from 'knex';
-import { ILedger, ISaleContactsBalanceQueuePayload } from '@/interfaces';
+import {
+  ILedger,
+  ILedgerEntry,
+  ISaleContactsBalanceQueuePayload,
+} from '@/interfaces';
 import HasTenancyService from '@/services/Tenancy/TenancyService';
 import { TenantMetadata } from '@/system/models';
+import { ACCOUNT_TYPE } from '@/data/AccountTypes';
 
 @Service()
 export class LedgerContactsBalanceStorage {
@@ -49,6 +54,29 @@ export class LedgerContactsBalanceStorage {
     await this.saveContactBalance(tenantId, ledger, contactId, trx);
   };
 
+  /**
+   * Filters AP/AR ledger entries.
+   * @param {number} tenantId
+   * @param {Knex.Transaction} trx
+   * @returns {Promise<(entry: ILedgerEntry) => boolean>}
+   */
+  private filterARAPLedgerEntris = async (
+    tenantId: number,
+    trx?: Knex.Transaction
+  ): Promise<(entry: ILedgerEntry) => boolean> => {
+    const { Account } = this.tenancy.models(tenantId);
+
+    const ARAPAcounts = await Account.query(trx).whereIn('accountType', [
+      ACCOUNT_TYPE.ACCOUNTS_RECEIVABLE,
+      ACCOUNT_TYPE.ACCOUNTS_PAYABLE,
+    ]);
+    const ARAPAcountsIds = ARAPAcounts.map((a) => a.id);
+
+    return (entry: ILedgerEntry) => {
+      return ARAPAcountsIds.indexOf(entry.accountId) !== -1;
+    };
+  };
+
   /**
    *
    * @param   {number} tenantId
@@ -63,16 +91,24 @@ export class LedgerContactsBalanceStorage {
     trx?: Knex.Transaction
   ): Promise<void> => {
     const { Contact } = this.tenancy.models(tenantId);
-    const contact = await Contact.query().findById(contactId);
+    const contact = await Contact.query(trx).findById(contactId);
 
     // Retrieves the given tenant metadata.
     const tenantMeta = await TenantMetadata.query().findOne({ tenantId });
-    
+
     // Detarmines whether the contact has foreign currency.
     const isForeignContact = contact.currencyCode !== tenantMeta.baseCurrency;
 
     // Filters the ledger base on the given contact id.
-    const contactLedger = ledger.whereContactId(contactId);
+    const filterARAPLedgerEntris = await this.filterARAPLedgerEntris(
+      tenantId,
+      trx
+    );
+    const contactLedger = ledger
+      // Filter entries only that have contact id.
+      .whereContactId(contactId)
+      // Filter entries on AR/AP accounts.
+      .filter(filterARAPLedgerEntris);
 
     const closingBalance = isForeignContact
       ? contactLedger
diff --git a/packages/server/src/services/Contacts/Customers/CRUD/CreateCustomer.ts b/packages/server/src/services/Contacts/Customers/CRUD/CreateCustomer.ts
index 0465ecd5f..6969360ff 100644
--- a/packages/server/src/services/Contacts/Customers/CRUD/CreateCustomer.ts
+++ b/packages/server/src/services/Contacts/Customers/CRUD/CreateCustomer.ts
@@ -55,7 +55,7 @@ export class CreateCustomer {
       } as ICustomerEventCreatingPayload);
 
       // Creates a new contact as customer.
-      const customer = await Contact.query().insertAndFetch({
+      const customer = await Contact.query(trx).insertAndFetch({
         ...customerObj,
       });
       // Triggers `onCustomerCreated` event.