diff --git a/hledger-lib/Hledger/Query.hs b/hledger-lib/Hledger/Query.hs
index 9e87b227e..f0cf5aa7d 100644
--- a/hledger-lib/Hledger/Query.hs
+++ b/hledger-lib/Hledger/Query.hs
@@ -293,16 +293,20 @@ same (a:as) = all (a==) as
 -- | Remove query terms (or whole sub-expressions) not matching the given
 -- predicate from this query.  XXX Semantics not yet clear.
 filterQuery :: (Query -> Bool) -> Query -> Query
-filterQuery p (And qs) = And $ filter p qs
-filterQuery p (Or qs) = Or $ filter p qs
--- filterQuery p (Not q) = Not $ filterQuery p q
-filterQuery p q = if p q then q else Any
+filterQuery p = simplifyQuery . filterQuery' p
+
+filterQuery' :: (Query -> Bool) -> Query -> Query
+filterQuery' p (And qs) = And $ map (filterQuery p) qs
+filterQuery' p (Or qs) = Or $ map (filterQuery p) qs
+-- filterQuery' p (Not q) = Not $ filterQuery p q
+filterQuery' p q = if p q then q else Any
 
 tests_filterQuery = [
  "filterQuery" ~: do
   let (q,p) `gives` r = assertEqual "" r (filterQuery p q)
   (Any, queryIsDepth) `gives` Any
   (Depth 1, queryIsDepth) `gives` Depth 1
+  (And [And [Status True,Depth 1]], not . queryIsDepth) `gives` Status True
   -- (And [Date nulldatespan, Not (Or [Any, Depth 1])], queryIsDepth) `gives` And [Not (Or [Depth 1])]
  ]
 
diff --git a/hledger-lib/Hledger/Reports.hs b/hledger-lib/Hledger/Reports.hs
index 92eb36003..36da151a9 100644
--- a/hledger-lib/Hledger/Reports.hs
+++ b/hledger-lib/Hledger/Reports.hs
@@ -252,7 +252,8 @@ type PostingsReportItem = (Maybe (Day, String) -- transaction date and descripti
 -- | Select postings from the journal and add running balance and other
 -- information to make a postings report. Used by eg hledger's register command.
 postingsReport :: ReportOpts -> Query -> Journal -> PostingsReport
-postingsReport opts q j = (totallabel, postingsReportItems ps nullposting depth startbal (+))
+postingsReport opts q j = -- trace ("q: "++show q++"\nq': "++show q') $
+                          (totallabel, postingsReportItems ps nullposting depth startbal (+))
     where
       ps | interval == NoInterval = displayableps
          | otherwise              = summarisePostingsByInterval interval depth empty reportspan displayableps
@@ -285,14 +286,17 @@ postingsReport opts q j = (totallabel, postingsReportItems ps nullposting depth
 
 tests_postingsReport = [
   "postingsReport" ~: do
+
+   -- with the query specified explicitly
    let (query, journal) `gives` n = (length $ snd $ postingsReport defreportopts query journal) `is` n
    (Any, nulljournal) `gives` 0
    (Any, samplejournal) `gives` 11
    -- register --depth just clips account names
    (Depth 2, samplejournal) `gives` 11
-   -- (Depth 2, samplejournal) `gives` 6
-   -- (Depth 1, samplejournal) `gives` 4
+   (And [Depth 1, Status True, Acct "expenses"], samplejournal) `gives` 2
+   (And [And [Depth 1, Status True], Acct "expenses"], samplejournal) `gives` 2
 
+   -- with query and/or command-line options
    assertEqual "" 11 (length $ snd $ postingsReport defreportopts Any samplejournal)
    assertEqual ""  9 (length $ snd $ postingsReport defreportopts{monthly_=True} Any samplejournal)
    assertEqual "" 19 (length $ snd $ postingsReport defreportopts{monthly_=True} (Empty True) samplejournal)
diff --git a/tests/register-depth.test b/tests/register-depth.test
index 3cb5d3a9b..f1f017494 100644
--- a/tests/register-depth.test
+++ b/tests/register-depth.test
@@ -1,15 +1,14 @@
-# this matches the second-level account but displays only the first-level name
+# 1. register --depth N matches postings as usual but clips account names to N
 bin/hledger -f - register aa --depth 1
 <<<
 2010/1/1 x
   a:aa:aaa      1
   b
-
 >>>
 2010/01/01 x                    a                                 1            1
 >>>=0
 
-# this matches the second-level account, displays the second-level name, does not aggregate transactions
+# 2. similar to above, postings with same clipped account name are not aggregated
 bin/hledger -f - register aa --depth 2
 <<<
 2010/1/1 x
@@ -23,14 +22,13 @@ bin/hledger -f - register aa --depth 2
 2010/1/2 z
   a:aa      1
   b:bb:bbb
-
 >>>
 2010/01/01 x                    a:aa                              1            1
 2010/01/01 y                    a:aa                              1            2
 2010/01/02 z                    a:aa                              1            3
 >>>=0
 
-# this matches the second-level account, displays the first-level name, aggregates by reporting interval
+# 3. as above, but with a reporting interval causing postings to be aggregated
 bin/hledger -f - register aa --depth 1 --daily
 <<<
 2010/1/1 x
@@ -44,8 +42,17 @@ bin/hledger -f - register aa --depth 1 --daily
 2010/1/2 z
   a:aa      1
   b:bb:bbb
-
 >>>
 2010/01/01 - 2010/01/01         a                                 2            2
 2010/01/02 - 2010/01/02         a                                 1            3
 >>>=0
+
+# 4. with --cleared
+bin/hledger -f - register a --depth 1 --cleared
+<<<
+2012/1/1 *
+  (a:aa)      1
+>>>
+2012/01/01                      (a)                               1            1
+>>>2
+>>>=0