diff --git a/Ledger.cpp b/Ledger.cpp
index 94133fa8bb..2cf8f2a3d6 100644
--- a/Ledger.cpp
+++ b/Ledger.cpp
@@ -154,6 +154,7 @@ Ledger::TransResult Ledger::applyTransaction(Transaction::pointer trans)
 		if(!!fromAccount && !toAccount)
 		{
 			toAccount=AccountState::pointer(new AccountState(trans->getToAccount()));
+			toAccount->incSeq(); // an account in a ledger has a sequence of 1
 			updateAccountState(toAccount);
 		}