diff --git a/erpnext/accounts/doctype/account/test_account.py b/erpnext/accounts/doctype/account/test_account.py
index 3a360c48c4..62303bd723 100644
--- a/erpnext/accounts/doctype/account/test_account.py
+++ b/erpnext/accounts/doctype/account/test_account.py
@@ -5,10 +5,13 @@
 import unittest
 
 import frappe
+from frappe.test_runner import make_test_records
 
 from erpnext.accounts.doctype.account.account import merge_account, update_account_number
 from erpnext.stock import get_company_default_inventory_account, get_warehouse_account
 
+test_dependencies = ["Company"]
+
 
 class TestAccount(unittest.TestCase):
 	def test_rename_account(self):
@@ -188,6 +191,58 @@ class TestAccount(unittest.TestCase):
 		frappe.delete_doc("Account", "1234 - Test Rename Sync Account - _TC4")
 		frappe.delete_doc("Account", "1234 - Test Rename Sync Account - _TC5")
 
+	def test_account_currency_sync(self):
+		"""
+		In a parent->child company setup, child should inherit parent account currency if explicitly specified.
+		"""
+
+		make_test_records("Company")
+
+		frappe.local.flags.pop("ignore_root_company_validation", None)
+
+		def create_bank_account():
+			acc = frappe.new_doc("Account")
+			acc.account_name = "_Test Bank JPY"
+
+			acc.parent_account = "Temporary Accounts - _TC6"
+			acc.company = "_Test Company 6"
+			return acc
+
+		acc = create_bank_account()
+		# Explicitly set currency
+		acc.account_currency = "JPY"
+		acc.insert()
+		self.assertTrue(
+			frappe.db.exists(
+				{
+					"doctype": "Account",
+					"account_name": "_Test Bank JPY",
+					"account_currency": "JPY",
+					"company": "_Test Company 7",
+				}
+			)
+		)
+
+		frappe.delete_doc("Account", "_Test Bank JPY - _TC6")
+		frappe.delete_doc("Account", "_Test Bank JPY - _TC7")
+
+		acc = create_bank_account()
+		# default currency is used
+		acc.insert()
+		self.assertTrue(
+			frappe.db.exists(
+				{
+					"doctype": "Account",
+					"account_name": "_Test Bank JPY",
+					"account_currency": "USD",
+					"company": "_Test Company 7",
+				}
+			)
+		)
+
+		frappe.delete_doc("Account", "_Test Bank JPY - _TC6")
+		frappe.delete_doc("Account", "_Test Bank JPY - _TC7")
+
 	def test_child_company_account_rename_sync(self):
 		frappe.local.flags.pop("ignore_root_company_validation", None)
 
diff --git a/erpnext/setup/doctype/company/test_records.json b/erpnext/setup/doctype/company/test_records.json
index 19b6ef27ac..e21bd2a3ce 100644
--- a/erpnext/setup/doctype/company/test_records.json
+++ b/erpnext/setup/doctype/company/test_records.json
@@ -80,5 +80,30 @@
 		"chart_of_accounts": "Standard",
 		"enable_perpetual_inventory": 1,
 		"default_holiday_list": "_Test Holiday List"
+	},
+	{
+		"abbr": "_TC6",
+		"company_name": "_Test Company 6",
+		"is_group": 1,
+		"country": "India",
+		"default_currency": "INR",
+		"doctype": "Company",
+		"domain": "Manufacturing",
+		"chart_of_accounts": "Standard",
+		"default_holiday_list": "_Test Holiday List",
+		"enable_perpetual_inventory": 0
+	},
+	{
+		"abbr": "_TC7",
+		"company_name": "_Test Company 7",
+		"parent_company": "_Test Company 6",
+		"is_group": 1,
+		"country": "United States",
+		"default_currency": "USD",
+		"doctype": "Company",
+		"domain": "Manufacturing",
+		"chart_of_accounts": "Standard",
+		"default_holiday_list": "_Test Holiday List",
+		"enable_perpetual_inventory": 0
 	}
 ]