diff --git a/erpnext/accounts/doctype/account/account.py b/erpnext/accounts/doctype/account/account.py
index 164f120..58674f4 100644
--- a/erpnext/accounts/doctype/account/account.py
+++ b/erpnext/accounts/doctype/account/account.py
@@ -162,9 +162,16 @@
 
 	def create_account_for_child_company(self, parent_acc_name_map, descendants, parent_acc_name):
 		for company in descendants:
+			company_bold = frappe.bold(company)
+			parent_acc_name_bold = frappe.bold(parent_acc_name)
 			if not parent_acc_name_map.get(company):
-				frappe.throw(_("While creating account for child Company {0}, parent account {1} not found. Please create the parent account in corresponding COA")
-					.format(company, parent_acc_name))
+				frappe.throw(_("While creating account for Child Company {0}, parent account {1} not found. Please create the parent account in corresponding COA")
+					.format(company_bold, parent_acc_name_bold), title=_("Account Not Found"))
+			if (frappe.db.get_value("Account", self.parent_account, "is_group") 
+				and not frappe.db.get_value("Account", parent_acc_name_map[company], "is_group")):
+				frappe.throw(_("While creating account for Child Company {0}, parent account {1} is found \
+					as a ledger account.<br><br>Please convert the parent account in corresponding child company COA to a group account.")
+					.format(company_bold, parent_acc_name_bold), title=_("Invalid Parent Account"))
 
 			filters = {
 				"account_name": self.account_name,
diff --git a/erpnext/accounts/doctype/account/test_account.py b/erpnext/accounts/doctype/account/test_account.py
index 89bb018..d16a8b2 100644
--- a/erpnext/accounts/doctype/account/test_account.py
+++ b/erpnext/accounts/doctype/account/test_account.py
@@ -111,6 +111,17 @@
 		self.assertEqual(acc_tc_4, "Test Sync Account - _TC4")
 		self.assertEqual(acc_tc_5, "Test Sync Account - _TC5")
 
+	def test_add_account_to_a_group(self):
+		frappe.db.set_value("Account", "Office Rent - _TC3", "is_group", 1)
+
+		acc = frappe.new_doc("Account")
+		acc.account_name = "Test Group Account"
+		acc.parent_account = "Office Rent - _TC3"
+		acc.company = "_Test Company 3"
+		self.assertRaises(frappe.ValidationError, acc.insert)
+
+		frappe.db.set_value("Account", "Office Rent - _TC3", "is_group", 0)
+
 def _make_test_records(verbose):
 	from frappe.test_runner import make_test_objects