diff --git a/erpnext/accounts/doctype/ledger_merge/ledger_merge.js b/erpnext/accounts/doctype/ledger_merge/ledger_merge.js
index 849c5fb9b51..b2db98dbd03 100644
--- a/erpnext/accounts/doctype/ledger_merge/ledger_merge.js
+++ b/erpnext/accounts/doctype/ledger_merge/ledger_merge.js
@@ -24,7 +24,6 @@ frappe.ui.form.on('Ledger Merge', {
 			if (!doc.root_type) frappe.throw(__('Please set Root Type'));
 			return {
 				filters: {
-					is_group: 0,
 					root_type: doc.root_type,
 					company: doc.company
 				}
@@ -41,7 +40,7 @@ frappe.ui.form.on('Ledger Merge', {
 			});
 			return {
 				filters: {
-					is_group: 0,
+					is_group: doc.is_group,
 					root_type: doc.root_type,
 					name: ["not in", acc],
 					company: doc.company
diff --git a/erpnext/accounts/doctype/ledger_merge/ledger_merge.json b/erpnext/accounts/doctype/ledger_merge/ledger_merge.json
index ee39e08c295..dd816df6278 100644
--- a/erpnext/accounts/doctype/ledger_merge/ledger_merge.json
+++ b/erpnext/accounts/doctype/ledger_merge/ledger_merge.json
@@ -13,6 +13,7 @@
   "column_break_3",
   "company",
   "status",
+  "is_group",
   "section_break_5",
   "merge_accounts"
  ],
@@ -79,11 +80,20 @@
    "label": "Account Name",
    "read_only": 1,
    "reqd": 1
+  },
+  {
+   "default": "0",
+   "depends_on": "account",
+   "fetch_from": "account.is_group",
+   "fieldname": "is_group",
+   "fieldtype": "Check",
+   "label": "Is Group",
+   "read_only": 1
   }
  ],
  "hide_toolbar": 1,
  "links": [],
- "modified": "2021-12-10 15:28:34.520588",
+ "modified": "2021-12-12 21:34:55.155146",
  "modified_by": "Administrator",
  "module": "Accounts",
  "name": "Ledger Merge",
diff --git a/erpnext/accounts/doctype/ledger_merge/ledger_merge.py b/erpnext/accounts/doctype/ledger_merge/ledger_merge.py
index 63130ca659c..830ad370d70 100644
--- a/erpnext/accounts/doctype/ledger_merge/ledger_merge.py
+++ b/erpnext/accounts/doctype/ledger_merge/ledger_merge.py
@@ -46,7 +46,13 @@ def start_merge(docname):
 	for row in ledger_merge.merge_accounts:
 		if not row.merged:
 			try:
-				merge_account(row.account, ledger_merge.account, 0, ledger_merge.root_type, ledger_merge.company)
+				merge_account(
+					row.account,
+					ledger_merge.account,
+					ledger_merge.is_group,
+					ledger_merge.root_type,
+					ledger_merge.company
+				)
 				row.db_set('merged', 1)
 				frappe.db.commit()
 				successful_merges += 1
@@ -58,7 +64,6 @@ def start_merge(docname):
 				)
 			except Exception:
 				frappe.db.rollback()
-				ledger_merge.db_set("status", "Error")
 				frappe.log_error(title=ledger_merge.name)
 			finally:
 				if successful_merges == total: