diff --git a/service/src/main/java/io/mifos/deposit/service/internal/service/helper/AccountingService.java b/service/src/main/java/io/mifos/deposit/service/internal/service/helper/AccountingService.java
index 3c68e87..fbd6b35 100644
--- a/service/src/main/java/io/mifos/deposit/service/internal/service/helper/AccountingService.java
+++ b/service/src/main/java/io/mifos/deposit/service/internal/service/helper/AccountingService.java
@@ -16,7 +16,10 @@
 package io.mifos.deposit.service.internal.service.helper;
 
 import io.mifos.accounting.api.v1.client.LedgerManager;
+import io.mifos.accounting.api.v1.client.LedgerNotFoundException;
 import io.mifos.accounting.api.v1.domain.Account;
+import io.mifos.accounting.api.v1.domain.Ledger;
+import io.mifos.core.lang.ServiceException;
 import io.mifos.deposit.service.ServiceConstants;
 import org.slf4j.Logger;
 import org.springframework.beans.factory.annotation.Autowired;
@@ -38,11 +41,17 @@
   }
 
   public void createAccount(final String ledgerIdentifier, final String accountIdentifier, final String productName) {
-    final Account account = new Account();
-    account.setIdentifier(accountIdentifier);
-    account.setLedger(ledgerIdentifier);
-    account.setName(productName);
-    account.setBalance(0.00D);
-    this.ledgerManager.createAccount(account);
+    try {
+      final Ledger ledger = this.ledgerManager.findLedger(ledgerIdentifier);
+      final Account account = new Account();
+      account.setIdentifier(accountIdentifier);
+      account.setType(ledger.getType());
+      account.setLedger(ledgerIdentifier);
+      account.setName(productName);
+      account.setBalance(0.00D);
+      this.ledgerManager.createAccount(account);
+    } catch (final LedgerNotFoundException lnfex) {
+      throw ServiceException.notFound("Ledger {0} not found.", ledgerIdentifier);
+    }
   }
 }