diff --git a/tests/test_meta_entity.py b/tests/test_meta_entity.py
index dd5c7121745c32db08c9490edabd9c1d9beb42bd..f8b012238e5c8e0ac8404c8df1e46fc693f24a59 100644
--- a/tests/test_meta_entity.py
+++ b/tests/test_meta_entity.py
@@ -214,6 +214,16 @@ def test_which_accounts_required_on(hook, account, required):
         assert any(error.message == "{} missing entity".format(account)
                    for error in errors)
 
+def test_dont_set_entity_none(hook):
+    txn = testutil.Transaction(postings=[
+        ('Expenses:Other', 5),
+        ('Assets:Cash', -5),
+    ])
+    assert any(hook.run(txn))
+    assert 'entity' not in txn.meta
+    for post in txn.postings:
+        assert post.meta is None or 'entity' not in post.meta
+
 def test_not_required_on_opening(hook):
     txn = testutil.OpeningBalance()
     assert not list(hook.run(txn))