diff --git a/hledger-lib/Hledger/Reports/BudgetReport.hs b/hledger-lib/Hledger/Reports/BudgetReport.hs
index 40ca6156f..e37a56edc 100644
--- a/hledger-lib/Hledger/Reports/BudgetReport.hs
+++ b/hledger-lib/Hledger/Reports/BudgetReport.hs
@@ -65,11 +65,16 @@ type BudgetReportRow = PeriodicReportRow BudgetCell
 -- and compare these to get a 'BudgetReport'.
 -- Unbudgeted accounts may be hidden or renamed (see budgetRollup).
 budgetReport :: ReportOpts -> Bool -> Bool -> DateSpan -> Day -> Journal -> BudgetReport
-budgetReport ropts assrt showunbudgeted reportspan d j =
+budgetReport ropts' assrt showunbudgeted reportspan d j =
   let
+    -- Budget report demands ALTree mode to ensure subaccounts and subaccount budgets are properly handled
+    -- and that reports with and without --show-unbudgeted make sense when compared side by side
+    ropts = ropts' { accountlistmode_ = ALTree }
     q = queryFromOpts d ropts 
     budgetedaccts = 
       dbg2 "budgetedacctsinperiod" $
+      nub $ 
+      concatMap expandAccountName $
       accountNamesFromPostings $ 
       concatMap tpostings $ 
       concatMap (flip runPeriodicTransaction reportspan) $ 
@@ -77,7 +82,7 @@ budgetReport ropts assrt showunbudgeted reportspan d j =
     actualj = dbg1 "actualj" $ budgetRollUp budgetedaccts showunbudgeted j
     budgetj = dbg1 "budgetj" $ budgetJournal assrt ropts reportspan j
     actualreport@(MultiBalanceReport (actualspans, _, _)) = dbg1 "actualreport" $ multiBalanceReport ropts  q actualj
-    budgetgoalreport@(MultiBalanceReport (_, budgetgoalitems, budgetgoaltotals)) = dbg1 "budgetgoalreport" $ multiBalanceReport ropts q budgetj
+    budgetgoalreport@(MultiBalanceReport (_, budgetgoalitems, budgetgoaltotals)) = dbg1 "budgetgoalreport" $ multiBalanceReport (ropts{empty_=True}) q budgetj
     budgetgoalreport'
       -- If no interval is specified:
       -- budgetgoalreport's span might be shorter actualreport's due to periodic txns; 
diff --git a/hledger/hledger_balance.m4.md b/hledger/hledger_balance.m4.md
index 008ea2f59..2f45c05ff 100644
--- a/hledger/hledger_balance.m4.md
+++ b/hledger/hledger_balance.m4.md
@@ -377,42 +377,149 @@ You can now see a monthly budget report:
 $ hledger balance -M --budget
 Budget performance in 2017/11/01-2017/12/31:
 
-                      ||                2017/11                  2017/12 
-======================++=================================================
- <unbudgeted>         ||                    $20                     $100 
- assets:bank:checking || $-2445 [99% of $-2480]  $-2665 [107% of $-2480] 
- expenses:bus         ||       $49 [98% of $50]        $53 [106% of $50] 
- expenses:food        ||     $396 [99% of $400]      $412 [103% of $400] 
- expenses:movies      ||      $30 [100% of $30]            0 [0% of $30] 
- income               ||   $1950 [98% of $2000]    $2100 [105% of $2000] 
-----------------------++-------------------------------------------------
-                      ||                      0                        0 
+                      ||                      Nov                       Dec 
+======================++====================================================
+ assets               || $-2445 [  99% of $-2480]  $-2665 [ 107% of $-2480] 
+ assets:bank          || $-2445 [  99% of $-2480]  $-2665 [ 107% of $-2480] 
+ assets:bank:checking || $-2445 [  99% of $-2480]  $-2665 [ 107% of $-2480] 
+ expenses             ||   $495 [ 103% of   $480]    $565 [ 118% of   $480] 
+ expenses:bus         ||    $49 [  98% of    $50]     $53 [ 106% of    $50] 
+ expenses:food        ||   $396 [  99% of   $400]    $412 [ 103% of   $400] 
+ expenses:movies      ||    $30 [ 100% of    $30]       0 [   0% of    $30] 
+ income               ||  $1950 [  98% of  $2000]   $2100 [ 105% of  $2000] 
+----------------------++----------------------------------------------------
+                      ||      0 [              0]       0 [              0] 
 ```
-By default, only accounts with budget goals during the report period are shown.
-`--show-unbudgeted` shows unbudgeted accounts as well.
-Top-level accounts with no budget goals anywhere below them are grouped under `<unbudgeted>`.
+
+By default, only accounts with budget goals during the report period are shown. In the example
+above, transactions in `expenses:gifts` and `expenses:supplies` are counted towards `expenses` budget,
+but accounts `expenses:gifts` and `expenses:supplies` are not shown, as they don't have any budgets.
+
+
+You can use `--show-unbudgeted` shows unbudgeted accounts as well:
+```shell
+$ hledger balance -M --budget --show-unbudgeted
+Budget performance in 2017/11/01-2017/12/31:
+
+                      ||                      Nov                       Dec 
+======================++====================================================
+ assets               || $-2445 [  99% of $-2480]  $-2665 [ 107% of $-2480] 
+ assets:bank          || $-2445 [  99% of $-2480]  $-2665 [ 107% of $-2480] 
+ assets:bank:checking || $-2445 [  99% of $-2480]  $-2665 [ 107% of $-2480] 
+ expenses             ||   $495 [ 103% of   $480]    $565 [ 118% of   $480] 
+ expenses:bus         ||    $49 [  98% of    $50]     $53 [ 106% of    $50] 
+ expenses:food        ||   $396 [  99% of   $400]    $412 [ 103% of   $400] 
+ expenses:gifts       ||      0                      $100                   
+ expenses:movies      ||    $30 [ 100% of    $30]       0 [   0% of    $30] 
+ expenses:supplies    ||    $20                         0                   
+ income               ||  $1950 [  98% of  $2000]   $2100 [ 105% of  $2000] 
+----------------------++----------------------------------------------------
+                      ||      0 [              0]       0 [              0] 
+```
+
 
 You can roll over unspent budgets to next period with `--cumulative`:
 ```shell
 $ hledger balance -M --budget --cumulative
 Budget performance in 2017/11/01-2017/12/31:
 
-                      ||             2017/11/30               2017/12/31 
-======================++=================================================
- <unbudgeted>         ||                    $20                     $120 
- assets:bank:checking || $-2445 [99% of $-2480]  $-5110 [103% of $-4960] 
- expenses:bus         ||       $49 [98% of $50]      $102 [102% of $100] 
- expenses:food        ||     $396 [99% of $400]      $808 [101% of $800] 
- expenses:movies      ||      $30 [100% of $30]         $30 [50% of $60] 
- income               ||   $1950 [98% of $2000]    $4050 [101% of $4000] 
-----------------------++-------------------------------------------------
-                      ||                      0                        0
+                      ||                      Nov                       Dec 
+======================++====================================================
+ assets               || $-2445 [  99% of $-2480]  $-5110 [ 103% of $-4960] 
+ assets:bank          || $-2445 [  99% of $-2480]  $-5110 [ 103% of $-4960] 
+ assets:bank:checking || $-2445 [  99% of $-2480]  $-5110 [ 103% of $-4960] 
+ expenses             ||   $495 [ 103% of   $480]   $1060 [ 110% of   $960] 
+ expenses:bus         ||    $49 [  98% of    $50]    $102 [ 102% of   $100] 
+ expenses:food        ||   $396 [  99% of   $400]    $808 [ 101% of   $800] 
+ expenses:movies      ||    $30 [ 100% of    $30]     $30 [  50% of    $60] 
+ income               ||  $1950 [  98% of  $2000]   $4050 [ 101% of  $4000] 
+----------------------++----------------------------------------------------
+                      ||      0 [              0]       0 [              0] 
 ```
 
 Note, the `-S/--sort-amount` flag is not yet fully supported with `--budget`.
 
 For more examples, see [Budgeting and Forecasting](https://github.com/simonmichael/hledger/wiki/Budgeting and forecasting).
 
+#### Nested budgets
+
+You can add budgets to any account in your account hierarchy. If you have budgets on both parent account and some of its children, then budget(s)
+of the child account(s) would be added to the budget of their parent, much like account balances behave.
+
+In the most simple case this means that once you add a budget to any account, all its parents would have budget as well. 
+
+To illustrate this, consider the following budget:
+```
+~ monthly from 2019/01
+    expenses:personal             $1,000.00
+    expenses:personal:electronics    $100.00
+    liabilities
+```
+
+With this, monthly budget for electronics is defined to be $100 and budget for personal expenses is an additional $1000, which implicity means
+that budget for both `expenses:personal` and `expenses` is $1100.
+
+Transactions in `expenses:personal:electronics` will be counted both towards its $100 budget and $1100 of `expenses:personal` , and transactions in any other subaccount of `expenses:personal` would be
+counted towards only towards the budget of `expenses:personal`.
+
+For example, let's consider these transactions:
+```journal
+~ monthly from 2019/01
+    expenses:personal             $1,000.00
+    expenses:personal:electronics    $100.00
+    liabilities
+
+2019/01/01 Google home hub
+    expenses:personal:electronics          $90.00
+    liabilities                           $-90.00
+
+2019/01/02 Phone screen protector
+    expenses:personal:electronics:upgrades          $10.00
+    liabilities
+
+2019/01/02 Weekly train ticket
+    expenses:personal:train tickets       $153.00
+    liabilities
+
+2019/01/03 Flowers
+    expenses:personal          $30.00
+    liabilities
+```
+
+As you can see, we have transactions in `expenses:personal:electronics:upgrades` and `expenses:personal:train tickets`, and since both of these accounts are without explicitly defined budget,
+these transactions would be counted towards budgets of `expenses:personal:electronics` and `expenses:personal` accordingly:
+
+```shell
+$ hledger balance --budget -M
+Budget performance in 2019/01:
+
+                               ||                           Jan 
+===============================++===============================
+ expenses                      ||  $283.00 [  26% of  $1100.00] 
+ expenses:personal             ||  $283.00 [  26% of  $1100.00] 
+ expenses:personal:electronics ||  $100.00 [ 100% of   $100.00] 
+ liabilities                   || $-283.00 [  26% of $-1100.00] 
+-------------------------------++-------------------------------
+                               ||        0 [                 0] 
+```
+
+And with `--show-unbudgeted`, we can get a better picture of budget allocation and consumption:
+```shell
+$ hledger balance --budget -M --show-unbudgeted
+Budget performance in 2019/01:
+
+                                        ||                           Jan 
+========================================++===============================
+ expenses                               ||  $283.00 [  26% of  $1100.00] 
+ expenses:personal                      ||  $283.00 [  26% of  $1100.00] 
+ expenses:personal:electronics          ||  $100.00 [ 100% of   $100.00] 
+ expenses:personal:electronics:upgrades ||   $10.00                      
+ expenses:personal:train tickets        ||  $153.00                      
+ liabilities                            || $-283.00 [  26% of $-1100.00] 
+----------------------------------------++-------------------------------
+                                        ||        0 [                 0] 
+```
+
 ### Output format
 
 The balance command supports [output destination](/manual.html#output-destination) and [output format](/manual.html#output-format) selection.
diff --git a/tests/budget/budget.test b/tests/budget/budget.test
index e62c0afec..289c83a59 100644
--- a/tests/budget/budget.test
+++ b/tests/budget/budget.test
@@ -34,28 +34,31 @@
 $ hledger bal -D -b 2016-12-01 -e 2016-12-04 -f - --budget
 Budget performance in 2016/12/01-2016/12/03:
 
-                  ||               2016/12/01                2016/12/02                2016/12/03 
-==================++==============================================================================
- <unbudgeted>     ||       0                         0                       $40                  
- assets:cash      ||    $-10 [  40% of  $-25]     $-14 [  56% of  $-25]     $-51 [ 204% of  $-25] 
- expenses:food    ||     $10 [ 100% of   $10]       $9 [  90% of   $10]      $11 [ 110% of   $10] 
- expenses:leisure ||       0 [   0% of   $15]       $5 [  33% of   $15]        0 [   0% of   $15] 
-------------------++------------------------------------------------------------------------------
-                  ||       0 [             0]        0 [             0]        0 [             0] 
+                  ||           2016/12/01            2016/12/02            2016/12/03 
+==================++==================================================================
+ assets           || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25] 
+ assets:cash      || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25] 
+ expenses         ||  $10 [  40% of  $25]   $14 [  56% of  $25]   $51 [ 204% of  $25] 
+ expenses:food    ||  $10 [ 100% of  $10]    $9 [  90% of  $10]   $11 [ 110% of  $10] 
+ expenses:leisure ||    0 [   0% of  $15]    $5 [  33% of  $15]     0 [   0% of  $15] 
+------------------++------------------------------------------------------------------
+                  ||    0 [            0]     0 [            0]     0 [            0] 
 
 # 2. --show-unbudgeted
 $ hledger bal -D -b 2016-12-01 -e 2016-12-04 -f - --budget --show-unbudgeted
 Budget performance in 2016/12/01-2016/12/03:
 
-                              ||               2016/12/01                2016/12/02                2016/12/03 
-==============================++==============================================================================
- <unbudgeted>:expenses:cab    ||       0                         0                       $15                  
- <unbudgeted>:expenses:movies ||       0                         0                       $25                  
- assets:cash                  ||    $-10 [  40% of  $-25]     $-14 [  56% of  $-25]     $-51 [ 204% of  $-25] 
- expenses:food                ||     $10 [ 100% of   $10]       $9 [  90% of   $10]      $11 [ 110% of   $10] 
- expenses:leisure             ||       0 [   0% of   $15]       $5 [  33% of   $15]        0 [   0% of   $15] 
-------------------------------++------------------------------------------------------------------------------
-                              ||       0 [             0]        0 [             0]        0 [             0] 
+                  ||           2016/12/01            2016/12/02            2016/12/03 
+==================++==================================================================
+ assets           || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25] 
+ assets:cash      || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25] 
+ expenses         ||  $10 [  40% of  $25]   $14 [  56% of  $25]   $51 [ 204% of  $25] 
+ expenses:cab     ||    0                     0                   $15                 
+ expenses:food    ||  $10 [ 100% of  $10]    $9 [  90% of  $10]   $11 [ 110% of  $10] 
+ expenses:leisure ||    0 [   0% of  $15]    $5 [  33% of  $15]     0 [   0% of  $15] 
+ expenses:movies  ||    0                     0                   $25                 
+------------------++------------------------------------------------------------------
+                  ||    0 [            0]     0 [            0]     0 [            0] 
 
 # 3. Test that budget works with mix of commodities
 <
@@ -95,14 +98,15 @@ Budget performance in 2016/12/01-2016/12/03:
 $ hledger bal -D -b 2016-12-01 -e 2016-12-04 -f - --budget
 Budget performance in 2016/12/01-2016/12/03:
 
-                  ||                 2016/12/01                     2016/12/02                2016/12/03 
-==================++=====================================================================================
- <unbudgeted>     ||         0                              0                       $40                  
- assets:cash      ||      $-15 [  60% of  $-25]          $-26 [ 104% of  $-25]     $-51 [ 204% of  $-25] 
- expenses:food    ||       £10 [ 150% of   $10]        20 CAD [ 210% of   $10]      $11 [ 110% of   $10] 
- expenses:leisure ||         0 [   0% of   $15]            $5 [  33% of   $15]        0 [   0% of   $15] 
-------------------++-------------------------------------------------------------------------------------
-                  || $-15, £10 [             0]  $-21, 20 CAD [             0]        0 [             0] 
+                  ||                 2016/12/01                    2016/12/02                  2016/12/03 
+==================++======================================================================================
+ assets           ||       $-15 [  60% of $-25]          $-26 [ 104% of $-25]        $-51 [ 204% of $-25] 
+ assets:cash      ||       $-15 [  60% of $-25]          $-26 [ 104% of $-25]        $-51 [ 204% of $-25] 
+ expenses         ||        £10 [  60% of  $25]    $5, 20 CAD [ 104% of  $25]         $51 [ 204% of  $25] 
+ expenses:food    ||        £10 [ 150% of  $10]        20 CAD [ 210% of  $10]         $11 [ 110% of  $10] 
+ expenses:leisure ||          0 [   0% of  $15]            $5 [  33% of  $15]           0 [   0% of  $15] 
+------------------++--------------------------------------------------------------------------------------
+                  ||  $-15, £10 [            0]  $-21, 20 CAD [            0]           0 [            0] 
 
 <
 ~ daily
@@ -129,13 +133,13 @@ Budget performance in 2016/12/01-2016/12/03:
 $ hledger -f- bal --budget
 Budget performance in 2018/01/01-2018/01/03:
 
-   ||    2018/01/01-2018/01/03 
-===++==========================
- a ||       2 [   7% of    30] 
- b ||       2 [   2% of   100] 
- c ||       2 [   0% of  1000] 
----++--------------------------
-   ||       6 [   1% of  1130] 
+   || 2018/01/01-2018/01/03 
+===++=======================
+ a ||     2 [   7% of   30] 
+ b ||     2 [   2% of  100] 
+ c ||     2 [   0% of 1000] 
+---++-----------------------
+   ||     6 [   1% of 1130] 
 
 # 5. Multiple periodic transactions with different intervals are combined. 
 # Budget goals with lower frequency than the report are posted in the 
@@ -143,25 +147,25 @@ Budget performance in 2018/01/01-2018/01/03:
 $ hledger -f- bal --budget -D
 Budget performance in 2018/01/01-2018/01/03:
 
-   ||               2018/01/01                2018/01/02                2018/01/03 
-===++==============================================================================
- a ||       1 [  10% of    10]        0 [   0% of    10]        1 [  10% of    10] 
- b ||       1 [   1% of   100]        0 [             0]        1 [             0] 
- c ||       1 [   0% of  1000]        0 [             0]        1 [             0] 
----++------------------------------------------------------------------------------
-   ||       3 [   0% of  1110]        0 [   0% of    10]        3 [  30% of    10] 
+   ||        2018/01/01         2018/01/02         2018/01/03 
+===++=========================================================
+ a || 1 [  10% of   10]  0 [   0% of   10]  1 [  10% of   10] 
+ b || 1 [   1% of  100]  0 [            0]  1 [            0] 
+ c || 1 [   0% of 1000]  0 [            0]  1 [            0] 
+---++---------------------------------------------------------
+   || 3 [   0% of 1110]  0 [   0% of   10]  3 [  30% of   10] 
 
 # 6. Budget goals with higher frequency than the report get added up appropriately.
 $ hledger -f- bal --budget -W
 Budget performance in 2018/01/01w01:
 
-   ||            2018/01/01w01 
-===++==========================
- a ||       2 [   7% of    30] 
- b ||       2 [   2% of   100] 
- c ||       2 [   0% of  1000] 
----++--------------------------
-   ||       6 [   1% of  1130] 
+   ||     2018/01/01w01 
+===++===================
+ a || 2 [   7% of   30] 
+ b || 2 [   2% of  100] 
+ c || 2 [   0% of 1000] 
+---++-------------------
+   || 6 [   1% of 1130] 
 
 # 7. A bounded two day budget. The end date is exclusive as usual.
 <
@@ -187,12 +191,12 @@ Budget performance in 2018/01/01w01:
 $ hledger -f- bal --budget -D
 Budget performance in 2018/01/01-2018/01/04:
 
-              ||               2018/01/01                2018/01/02                2018/01/03                2018/01/04 
-==============++========================================================================================================
- <unbudgeted> ||       1                         1                         1                         1                  
- a            ||       1                         1 [ 100% of     1]        1 [ 100% of     1]        1                  
---------------++--------------------------------------------------------------------------------------------------------
-              ||       2                         2 [ 200% of     1]        2 [ 200% of     1]        2                  
+              ||     2018/01/01      2018/01/02      2018/01/03      2018/01/04 
+==============++================================================================
+ <unbudgeted> || 1               1               1               1              
+ a            || 1               1 [ 100% of 1]  1 [ 100% of 1]  1              
+--------------++----------------------------------------------------------------
+              || 2               2 [ 200% of 1]  2 [ 200% of 1]  2              
 
 # 8. Multiple bounded budgets.
 <
@@ -217,21 +221,21 @@ Budget performance in 2018/01/01-2018/01/04:
 $ hledger -f- bal --budget -D
 Budget performance in 2018/01/01-2018/01/04:
 
-   ||               2018/01/01                2018/01/02                2018/01/03                2018/01/04 
-===++========================================================================================================
- a ||       1 [ 100% of     1]        1 [ 100% of     1]        1 [  10% of    10]        1 [  10% of    10] 
----++--------------------------------------------------------------------------------------------------------
-   ||       1 [ 100% of     1]        1 [ 100% of     1]        1 [  10% of    10]        1 [  10% of    10] 
+   ||      2018/01/01       2018/01/02       2018/01/03       2018/01/04 
+===++====================================================================
+ a || 1 [ 100% of  1]  1 [ 100% of  1]  1 [  10% of 10]  1 [  10% of 10] 
+---++--------------------------------------------------------------------
+   || 1 [ 100% of  1]  1 [ 100% of  1]  1 [  10% of 10]  1 [  10% of 10] 
 
 # 9. A "from A to B" budget should not be included in a report beginning on B.
 $ hledger -f- bal --budget -D -b 2018/1/3
 Budget performance in 2018/01/03-2018/01/04:
 
-   ||               2018/01/03                2018/01/04 
-===++====================================================
- a ||       1 [  10% of    10]        1 [  10% of    10] 
----++----------------------------------------------------
-   ||       1 [  10% of    10]        1 [  10% of    10] 
+   ||      2018/01/03       2018/01/04 
+===++==================================
+ a || 1 [  10% of 10]  1 [  10% of 10] 
+---++----------------------------------
+   || 1 [  10% of 10]  1 [  10% of 10] 
 
 <
 ~ daily
@@ -249,21 +253,21 @@ Budget performance in 2018/01/03-2018/01/04:
 $ hledger -f- bal --budget -D date:2018/1/1-2018/1/3
 Budget performance in 2018/01/01-2018/01/02:
 
-   ||               2018/01/01                2018/01/02 
-===++====================================================
- a ||       0 [   0% of     1]        0 [   0% of     1] 
----++----------------------------------------------------
-   ||       0 [   0% of     1]        0 [   0% of     1] 
+   ||     2018/01/01      2018/01/02 
+===++================================
+ a || 0 [   0% of 1]  0 [   0% of 1] 
+---++--------------------------------
+   || 0 [   0% of 1]  0 [   0% of 1] 
 
 # 11. With -E, zeroes are shown
 $ hledger -f- bal --budget -D date:2018/1/1-2018/1/3 -E
 Budget performance in 2018/01/01-2018/01/02:
 
-   ||               2018/01/01                2018/01/02 
-===++====================================================
- a ||       0 [   0% of     1]        0 [   0% of     1] 
----++----------------------------------------------------
-   ||       0 [   0% of     1]        0 [   0% of     1] 
+   ||     2018/01/01      2018/01/02 
+===++================================
+ a || 0 [   0% of 1]  0 [   0% of 1] 
+---++--------------------------------
+   || 0 [   0% of 1]  0 [   0% of 1] 
 
 # 12. subaccounts of budgeted accounts count towards budget
 <
@@ -276,9 +280,9 @@ Budget performance in 2018/01/01-2018/01/02:
 $ hledger -f- bal --budget -N
 Budget performance in 2018/01/01:
 
-   ||               2018/01/01 
-===++==========================
- a ||       1 [ 100% of     1] 
+   ||     2018/01/01 
+===++================
+ a || 1 [ 100% of 1] 
 
 # 13. budget goals on both parent and subaccounts are counted
 <
@@ -293,23 +297,24 @@ Budget performance in 2018/01/01:
 $ hledger -f- bal --budget
 Budget performance in 2018/01/01:
 
-       ||               2018/01/01 
-=======++==========================
- a     ||       1 [   1% of   100] 
- a:b:c ||       1 [ 100% of     1] 
--------++--------------------------
-       ||       2 [   2% of   101] 
+       ||       2018/01/01 
+=======++==================
+ a     || 2 [   2% of 101] 
+ a:b   || 1 [ 100% of   1] 
+ a:b:c || 1 [ 100% of   1] 
+-------++------------------
+       || 2 [   2% of 101] 
 
 $ hledger -f- bal --budget --tree
 Budget performance in 2018/01/01:
 
-       ||               2018/01/01 
-=======++==========================
- a     ||       2 [   2% of   101] 
-   b   ||       1 [ 100% of     1] 
-     c ||       1 [ 100% of     1] 
--------++--------------------------
-       ||       2 [   2% of   101] 
+       ||       2018/01/01 
+=======++==================
+ a     || 2 [   2% of 101] 
+   b   || 1 [ 100% of   1] 
+     c || 1 [ 100% of   1] 
+-------++------------------
+       || 2 [   2% of 101] 
 
 # TODO
 # 14. respect hierarchy when sorting in tree mode
@@ -336,11 +341,205 @@ P 2018/01/26 SHARE €10
 $ hledger -f - bal -M --budget --cumulative --forecast --value
 Budget performance in 2018/05/01-2018/06/30:
 
-                ||                      May                       Jun 
-================++====================================================
- <unbudgeted>   ||    €-10                      €-10                  
- assets:bank    ||       0                       €-1 [ 100% of   €-1] 
- assets:pension ||     €10                       €11 [1100% of    €1] 
-----------------++----------------------------------------------------
-                ||       0                         0 [             0] 
+                ||                 May                  Jun 
+================++==========================================
+ <unbudgeted>   || €-10                 €-10                
+ assets         ||  €10                  €10 [           0] 
+ assets:bank    ||    0                  €-1 [ 100% of €-1] 
+ assets:pension ||  €10                  €11 [1100% of  €1] 
+----------------++------------------------------------------
+                ||    0                    0 [           0] 
+
+# 17. With subaccounts, child accounts are properly included in the parent balance when budget is checked
+<
+~ monthly from 2019/01
+    expenses:personal             $1,000.00
+    liabilities
+
+2019/01/01 Google home hub and home mini x2
+    expenses:personal:electronics          $10.00
+    liabilities                           $-10.00
+
+2019/01/02 Google Home Hub Permium Subscription
+    expenses:personal:electronics:upgrades          $10.00
+    liabilities                           $-10.00
+
+2019/01/03 Something else
+    expenses:personal          $30.00
+    liabilities                           $-30.00
+
+$ hledger -f- bal --budget
+Budget performance in 2019/01/01-2019/01/03:
+
+                   ||        2019/01/01-2019/01/03 
+===================++==============================
+ expenses          ||  $50.00 [   5% of $1,000.00] 
+ expenses:personal ||  $50.00 [   5% of $1,000.00] 
+ liabilities       || $-50.00 [   5% of $-1000.00] 
+-------------------++------------------------------
+                   ||       0 [                 0] 
+
+$ hledger -f- bal --budget --show-unbudgeted
+Budget performance in 2019/01/01-2019/01/03:
+
+                                        ||        2019/01/01-2019/01/03 
+========================================++==============================
+ expenses                               ||  $50.00 [   5% of $1,000.00] 
+ expenses:personal                      ||  $50.00 [   5% of $1,000.00] 
+ expenses:personal:electronics          ||  $20.00                      
+ expenses:personal:electronics:upgrades ||  $10.00                      
+ liabilities                            || $-50.00 [   5% of $-1000.00] 
+----------------------------------------++------------------------------
+                                        ||       0 [                 0] 
+
+$ hledger -f- bal --budget --tree
+Budget performance in 2019/01/01-2019/01/03:
+
+             ||        2019/01/01-2019/01/03 
+=============++==============================
+ expenses    ||  $50.00 [   5% of $1,000.00] 
+   personal  ||  $50.00 [   5% of $1,000.00] 
+ liabilities || $-50.00 [   5% of $-1000.00] 
+-------------++------------------------------
+             ||       0 [                 0] 
+
+$ hledger -f- bal --budget --tree --show-unbudgeted
+Budget performance in 2019/01/01-2019/01/03:
+
+                 ||        2019/01/01-2019/01/03 
+=================++==============================
+ expenses        ||  $50.00 [   5% of $1,000.00] 
+   personal      ||  $50.00 [   5% of $1,000.00] 
+     electronics ||  $20.00                      
+       upgrades  ||  $10.00                      
+ liabilities     || $-50.00 [   5% of $-1000.00] 
+-----------------++------------------------------
+                 ||       0 [                 0] 
+
+# 18. Subaccounts + nested budgets
+<
+~ monthly from 2019/01
+    expenses:personal             $1,000.00
+    expenses:personal:electronics  $100.00
+    liabilities
+
+2019/01/01 Google home hub and home mini x2
+    expenses:personal:electronics          $10.00
+    liabilities                           $-10.00
+
+2019/01/02 Google Home Hub Permium Subscription
+    expenses:personal:electronics:upgrades          $10.00
+    liabilities                           $-10.00
+
+2019/01/03 Something else
+    expenses:personal          $30.00
+    liabilities                           $-30.00
+
+$ hledger -f- bal --budget
+Budget performance in 2019/01/01-2019/01/03:
+
+                               ||        2019/01/01-2019/01/03 
+===============================++==============================
+ expenses                      ||  $50.00 [   5% of  $1100.00] 
+ expenses:personal             ||  $50.00 [   5% of  $1100.00] 
+ expenses:personal:electronics ||  $20.00 [  20% of   $100.00] 
+ liabilities                   || $-50.00 [   5% of $-1100.00] 
+-------------------------------++------------------------------
+                               ||       0 [                 0] 
+
+$ hledger -f- bal --budget --show-unbudgeted
+Budget performance in 2019/01/01-2019/01/03:
+
+                                        ||        2019/01/01-2019/01/03 
+========================================++==============================
+ expenses                               ||  $50.00 [   5% of  $1100.00] 
+ expenses:personal                      ||  $50.00 [   5% of  $1100.00] 
+ expenses:personal:electronics          ||  $20.00 [  20% of   $100.00] 
+ expenses:personal:electronics:upgrades ||  $10.00                      
+ liabilities                            || $-50.00 [   5% of $-1100.00] 
+----------------------------------------++------------------------------
+                                        ||       0 [                 0] 
+
+$ hledger -f- bal --budget --tree
+Budget performance in 2019/01/01-2019/01/03:
+
+                 ||        2019/01/01-2019/01/03 
+=================++==============================
+ expenses        ||  $50.00 [   5% of  $1100.00] 
+   personal      ||  $50.00 [   5% of  $1100.00] 
+     electronics ||  $20.00 [  20% of   $100.00] 
+ liabilities     || $-50.00 [   5% of $-1100.00] 
+-----------------++------------------------------
+                 ||       0 [                 0] 
+
+$ hledger -f- bal --budget --tree --show-unbudgeted
+Budget performance in 2019/01/01-2019/01/03:
+
+                 ||        2019/01/01-2019/01/03 
+=================++==============================
+ expenses        ||  $50.00 [   5% of  $1100.00] 
+   personal      ||  $50.00 [   5% of  $1100.00] 
+     electronics ||  $20.00 [  20% of   $100.00] 
+       upgrades  ||  $10.00                      
+ liabilities     || $-50.00 [   5% of $-1100.00] 
+-----------------++------------------------------
+                 ||       0 [                 0] 
+
+## Zero budget == no budget
+<
+~ monthly from 2019-01
+  expenses:bills     $100  ; bills has a $100 budget of its own, separate from subaccounts
+  expenses:bills:a    $20  ; a has non-zero budget and non-zero posted amount
+  expenses:bills:b   $200  ; b's budget is larger than bills'; we can see it's added to, not part of, that
+  expenses:bills:c    $50  ; c has a budget but no postings
+  expenses:bills:f     $0  ; f has an explicit zero budget
+  income:cash              ; cash has a negative $370 budget balancing the above
+
+2019-01-01 transaction1
+  income:cash
+  expenses:bills:a    $10
+  expenses:bills:b    $40
+  expenses:bills:d    $20  ; d has postings but no budget
+  expenses:bills:e    $10  ; e has postings summing to zero, and no budget
+  expenses:bills:f    $10
+
+2019-01-02 transaction2
+  income:cash
+  expenses:bills:e    -$10
+
+# By default it hides d (because no budget) and e (because zero posted amount).
+# f is shown though its budget is zero, it probably shouldn't be.
+$ hledger bal -f- --budget 
+Budget performance in 2019/01/01-2019/01/02:
+
+                  || 2019/01/01-2019/01/02 
+==================++=======================
+ expenses         ||  $80 [  22% of  $370] 
+ expenses:bills   ||  $80 [  22% of  $370] 
+ expenses:bills:a ||  $10 [  50% of   $20] 
+ expenses:bills:b ||  $40 [  20% of  $200] 
+ expenses:bills:c ||    0 [   0% of   $50] 
+ expenses:bills:f ||  $10 [             0] 
+ income           || $-80 [  22% of $-370] 
+ income:cash      || $-80 [  22% of $-370] 
+------------------++-----------------------
+                  ||    0 [             0] 
+
+# --show-unbudgeted shows d
+$ hledger bal -f- --budget --show-unbudgeted
+Budget performance in 2019/01/01-2019/01/02:
+
+                  || 2019/01/01-2019/01/02 
+==================++=======================
+ expenses         ||  $80 [  22% of  $370] 
+ expenses:bills   ||  $80 [  22% of  $370] 
+ expenses:bills:a ||  $10 [  50% of   $20] 
+ expenses:bills:b ||  $40 [  20% of  $200] 
+ expenses:bills:c ||    0 [   0% of   $50] 
+ expenses:bills:d ||  $20                  
+ expenses:bills:f ||  $10 [             0] 
+ income           || $-80 [  22% of $-370] 
+ income:cash      || $-80 [  22% of $-370] 
+------------------++-----------------------
+                  ||    0 [             0] 
 
diff --git a/tests/budget/sorting.test b/tests/budget/sorting.test
index 7486d5eac..52cfd2858 100644
--- a/tests/budget/sorting.test
+++ b/tests/budget/sorting.test
@@ -38,12 +38,13 @@
 $ hledger -f- bal --budget -DTN
 Budget performance in 2016/12/01-2016/12/03:
 
-                  ||               2016/12/01                2016/12/02                2016/12/03                     Total 
-==================++========================================================================================================
- <unbudgeted>     ||       0                         0                       $40                       $40                  
- assets:cash      ||    $-10 [  40% of  $-25]     $-14 [  56% of  $-25]     $-51 [ 204% of  $-25]     $-75 [ 100% of  $-75] 
- expenses:food    ||     $10 [ 100% of   $10]       $9 [  90% of   $10]      $11 [ 110% of   $10]      $30 [ 100% of   $30] 
- expenses:leisure ||       0 [   0% of   $15]       $5 [  33% of   $15]        0 [   0% of   $15]       $5 [  11% of   $45] 
+                  ||           2016/12/01            2016/12/02            2016/12/03                 Total 
+==================++========================================================================================
+ assets           || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
+ assets:cash      || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
+ expenses         ||  $10 [  40% of  $25]   $14 [  56% of  $25]   $51 [ 204% of  $25]   $75 [ 100% of  $75] 
+ expenses:food    ||  $10 [ 100% of  $10]    $9 [  90% of  $10]   $11 [ 110% of  $10]   $30 [ 100% of  $30] 
+ expenses:leisure ||    0 [   0% of  $15]    $5 [  33% of  $15]     0 [   0% of  $15]    $5 [  11% of  $45] 
 
 #** Default sort with account declarations
 
@@ -83,12 +84,13 @@ account expenses:leisure
 $ hledger -f- bal --budget -DTN
 Budget performance in 2016/12/01-2016/12/03:
 
-                  ||               2016/12/01                2016/12/02                2016/12/03                     Total 
-==================++========================================================================================================
- <unbudgeted>     ||       0                         0                       $40                       $40                  
- expenses:leisure ||       0 [   0% of   $15]       $5 [  33% of   $15]        0 [   0% of   $15]       $5 [  11% of   $45] 
- expenses:food    ||     $10 [ 100% of   $10]       $9 [  90% of   $10]      $11 [ 110% of   $10]      $30 [ 100% of   $30] 
- assets:cash      ||    $-10 [  40% of  $-25]     $-14 [  56% of  $-25]     $-51 [ 204% of  $-25]     $-75 [ 100% of  $-75] 
+                  ||           2016/12/01            2016/12/02            2016/12/03                 Total 
+==================++========================================================================================
+ expenses         ||  $10 [  40% of  $25]   $14 [  56% of  $25]   $51 [ 204% of  $25]   $75 [ 100% of  $75] 
+ expenses:leisure ||    0 [   0% of  $15]    $5 [  33% of  $15]     0 [   0% of  $15]    $5 [  11% of  $45] 
+ expenses:food    ||  $10 [ 100% of  $10]    $9 [  90% of  $10]   $11 [ 110% of  $10]   $30 [ 100% of  $30] 
+ assets           || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
+ assets:cash      || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
 
 # # 2. --show-unbudgeted
 # $ hledger bal -D -b 2016-12-01 -e 2016-12-04 -f - --budget --show-unbudgeted
@@ -156,26 +158,26 @@ Budget performance in 2016/12/01-2016/12/03:
 $ hledger -f- bal --budget -DTNS
 Budget performance in 2016/12/01-2016/12/03:
 
-                  ||               2016/12/01                2016/12/02                2016/12/03                     Total 
-==================++========================================================================================================
- <unbudgeted>     ||       0                         0                       $40                       $40                  
- expenses:food    ||     $10 [ 100% of   $10]       $9 [  90% of   $10]      $11 [ 110% of   $10]      $30 [ 100% of   $30] 
- expenses:leisure ||       0 [   0% of   $15]       $5 [  33% of   $15]        0 [   0% of   $15]       $5 [  11% of   $45] 
- assets:cash      ||    $-10 [  40% of  $-25]     $-14 [  56% of  $-25]     $-51 [ 204% of  $-25]     $-75 [ 100% of  $-75] 
+                  ||           2016/12/01            2016/12/02            2016/12/03                 Total 
+==================++========================================================================================
+ expenses         ||  $10 [  40% of  $25]   $14 [  56% of  $25]   $51 [ 204% of  $25]   $75 [ 100% of  $75] 
+ expenses:food    ||  $10 [ 100% of  $10]    $9 [  90% of  $10]   $11 [ 110% of  $10]   $30 [ 100% of  $30] 
+ expenses:leisure ||    0 [   0% of  $15]    $5 [  33% of  $15]     0 [   0% of  $15]    $5 [  11% of  $45] 
+ assets           || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
+ assets:cash      || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
 
 #** Sort by actual amount, tree mode.
 
 $ hledger -f- bal --budget -DTNS --tree
 Budget performance in 2016/12/01-2016/12/03:
 
-              ||               2016/12/01                2016/12/02                2016/12/03                     Total 
-==============++========================================================================================================
- <unbudgeted> ||       0                         0                       $40                       $40                  
- expenses     ||     $10 [  40% of   $25]      $14 [  56% of   $25]      $11 [  44% of   $25]      $35 [  47% of   $75] 
-   food       ||     $10 [ 100% of   $10]       $9 [  90% of   $10]      $11 [ 110% of   $10]      $30 [ 100% of   $30] 
-   leisure    ||       0 [   0% of   $15]       $5 [  33% of   $15]        0 [   0% of   $15]       $5 [  11% of   $45] 
- assets       ||    $-10 [  40% of  $-25]     $-14 [  56% of  $-25]     $-51 [ 204% of  $-25]     $-75 [ 100% of  $-75] 
-   cash       ||    $-10 [  40% of  $-25]     $-14 [  56% of  $-25]     $-51 [ 204% of  $-25]     $-75 [ 100% of  $-75] 
+           ||           2016/12/01            2016/12/02            2016/12/03                 Total 
+===========++========================================================================================
+ expenses  ||  $10 [  40% of  $25]   $14 [  56% of  $25]   $51 [ 204% of  $25]   $75 [ 100% of  $75] 
+   food    ||  $10 [ 100% of  $10]    $9 [  90% of  $10]   $11 [ 110% of  $10]   $30 [ 100% of  $30] 
+   leisure ||    0 [   0% of  $15]    $5 [  33% of  $15]     0 [   0% of  $15]    $5 [  11% of  $45] 
+ assets    || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
+   cash    || $-10 [  40% of $-25]  $-14 [  56% of $-25]  $-51 [ 204% of $-25]  $-75 [ 100% of $-75] 
 
 #** other ?
 # with --show-unbudgeted