diff --git a/ledgercalc.py b/ledgercalc.py
index 54fbb4d..b361314 100644
--- a/ledgercalc.py
+++ b/ledgercalc.py
@@ -32,14 +32,20 @@
 # find the balance for an account
 def balance_acct(acct_name, start_d=None, end_d=None):
     total = ledger.Balance()
+    splitter = "  "
+    payee = None
+    if splitter in acct_name:
+        index = acct_name.index(splitter)
+        payee = acct_name[(index + 4):]
+        acct_name = acct_name[:index]
     if re.match(r"^[A-Za-z:_\-\ ]*$",acct_name):  # if the account name lacks re's
         account = journal.find_account_re(acct_name)
-        return bal_posts_subacct(account, start_d, end_d)
+        return bal_posts_subacct(account, start_d, end_d, payee)
     else:
         return bal_re_acct(acct_name,start_d,end_d)
 
 # recursively accumulate the balance for all posts/subaccounts of given account
-def bal_posts_subacct(account, start_d=None, end_d=None):
+def bal_posts_subacct(account, start_d=None, end_d=None, payee=None):
     total = ledger.Balance()
     if account == None: # if nothing was matched, return empty balance object
         return total
@@ -48,6 +54,8 @@ def bal_posts_subacct(account, start_d=None, end_d=None):
             continue
         if end_d and post.date > end_d:
             continue
+        if payee and payee != post.xact.payee:
+            continue
         total += post.amount
     for subacct in account.accounts():
         total += bal_posts_subacct(subacct, start_d, end_d)
diff --git a/readme.md b/readme.md
index f6baf22..cf3215f 100644
--- a/readme.md
+++ b/readme.md
@@ -20,6 +20,10 @@ adds two accounts, pushes result onto stack.
 
 Accounts containing spaces/regex must be put in double quotes.
 
+To filter transactions by payee, append two spaces and then payee to account name, like this:
+
+    "Income:Wages  Acme, Inc." account2 +
+
 Variables are prefixed with `$`, and are assigned like this:
 
     $taxrate 0.091 =