diff --git a/erpnext/accounts/doctype/bank_account/bank_account.py b/erpnext/accounts/doctype/bank_account/bank_account.py
index c402d46c984f0d79b885eff059ed16a23016857f..b6efdbfad60de1870ec0fe8cbe7d9e188baa2bb0 100644
--- a/erpnext/accounts/doctype/bank_account/bank_account.py
+++ b/erpnext/accounts/doctype/bank_account/bank_account.py
@@ -60,6 +60,7 @@ class BankAccount(Document):
 		self.validate_iban()
 		self.get_iban_details()
 		self.validate_account()
+		self.update_default_bank_account()
 
 	def validate_account(self):
 		if self.account:
@@ -121,27 +122,53 @@ class BankAccount(Document):
 		except Exception:
 			pass
 
+	def update_default_bank_account(self):
+		if self.is_default and not self.disabled:
+			frappe.db.set_value(
+				"Bank Account",
+				{
+					"party_type": self.party_type,
+					"party": self.party,
+					"is_company_account": self.is_company_account,
+					"is_default": 1,
+					"disabled": 0,
+				},
+				"is_default",
+				0,
+			)
+
 
 @frappe.whitelist()
 def make_bank_account(doctype, docname):
 	doc = frappe.new_doc("Bank Account")
 	doc.party_type = doctype
 	doc.party = docname
-	doc.is_default = 1
 
 	return doc
 
 
 def get_party_bank_account(party_type, party):
-	return frappe.db.get_value(party_type, party, "default_bank_account")
-
-
-def get_default_company_bank_account(company):
 	return frappe.db.get_value(
-		"Bank Account", {"company": company, "is_company_account": 1, "is_default": 1}
+		"Bank Account",
+		{"party_type": party_type, "party": party, "is_default": 1, "disabled": 0},
+		"name",
 	)
 
 
+def get_default_company_bank_account(company, party_type, party):
+	default_company_bank_account = frappe.db.get_value(party_type, party, "default_bank_account")
+	if default_company_bank_account:
+		if company != frappe.get_cached_value("Bank Account", default_company_bank_account, "company"):
+			default_company_bank_account = None
+
+	if not default_company_bank_account:
+		default_company_bank_account = frappe.db.get_value(
+			"Bank Account", {"company": company, "is_company_account": 1, "is_default": 1}
+		)
+
+	return default_company_bank_account
+
+
 @frappe.whitelist()
 def get_bank_account_details(bank_account):
 	return frappe.get_cached_value(
diff --git a/erpnext/accounts/doctype/payment_entry/payment_entry.py b/erpnext/accounts/doctype/payment_entry/payment_entry.py
index 54218f80f10aa7bf88ed165fbe9c759abb49f221..1a274c0a387855f392ef719a1a8944608bebd617 100644
--- a/erpnext/accounts/doctype/payment_entry/payment_entry.py
+++ b/erpnext/accounts/doctype/payment_entry/payment_entry.py
@@ -2047,8 +2047,7 @@ def get_party_details(company, party_type, party, date, cost_center=None, down_p
 	if party_type in ["Customer", "Supplier"]:
 		party_bank_account = get_party_bank_account(party_type, party)
 
-	bank_account = get_default_company_bank_account(company)
-
+	bank_account = get_default_company_bank_account(company, party_type, party)
 	return {
 		"party_account": party_account,
 		"party_name": party_name,