diff --git a/erpnext/accounts/doctype/accounts_settings/accounts_settings.json b/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
index 41f9ce030a..a3c29b6d64 100644
--- a/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
+++ b/erpnext/accounts/doctype/accounts_settings/accounts_settings.json
@@ -21,6 +21,7 @@
   "book_asset_depreciation_entry_automatically",
   "add_taxes_from_item_tax_template",
   "automatically_fetch_payment_terms",
+  "delete_linked_ledger_entries",
   "deferred_accounting_settings_section",
   "automatically_process_deferred_accounting_entry",
   "book_deferred_entries_based_on",
@@ -219,6 +220,12 @@
    "fieldtype": "Select",
    "label": "Book Deferred Entries Based On",
    "options": "Days\nMonths"
+  },
+  {
+   "default": "0",
+   "fieldname": "delete_linked_ledger_entries",
+   "fieldtype": "Check",
+   "label": "Delete Accounting and Stock Ledger Entries on deletion of Transaction"
   }
  ],
  "icon": "icon-cog",
@@ -226,7 +233,7 @@
  "index_web_pages_for_search": 1,
  "issingle": 1,
  "links": [],
- "modified": "2020-10-13 11:32:52.268826",
+ "modified": "2021-01-05 13:04:00.118892",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Accounts Settings",
@@ -254,4 +261,4 @@
  "sort_field": "modified",
  "sort_order": "ASC",
  "track_changes": 1
-}
+}
\ No newline at end of file
diff --git a/erpnext/controllers/accounts_controller.py b/erpnext/controllers/accounts_controller.py
index 0f1aa23064..b9bfbaf0bd 100644
--- a/erpnext/controllers/accounts_controller.py
+++ b/erpnext/controllers/accounts_controller.py
@@ -118,6 +118,12 @@ class AccountsController(TransactionBase):
 	
 	def before_cancel(self):
 		validate_einvoice_fields(self)
+	
+	def on_trash(self):
+		# delete sl and gl entries on deletion of transaction
+		if frappe.db.get_single_value('Accounts Settings', 'delete_linked_ledger_entries'):
+			frappe.db.sql("delete from `tabGL Entry` where voucher_type=%s and voucher_no=%s", (self.doctype, self.name))
+			frappe.db.sql("delete from `tabStock Ledger Entry` where voucher_type=%s and voucher_no=%s", (self.doctype, self.name))
 
 	def validate_deferred_start_and_end_date(self):
 		for d in self.items: