diff --git a/CHANGELOG.md b/CHANGELOG.md
index 21d9feb6be1..0e67e901b3a 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -447,3 +447,4 @@ Released with 1.0.0-beta.37 code base.
 - lerna from 3.22.1 to 4.0.0 (#4231)
 - Dropped build tests in CI for Node v8 and v10, and added support for Node v14
 - Change default value for `maxPriorityFeePerGas` from `1 Gwei` to `2.5 Gwei` (#4284)
+- Fixed bug in signTransaction (#4295) 
\ No newline at end of file
diff --git a/packages/web3-eth-accounts/src/index.js b/packages/web3-eth-accounts/src/index.js
index 8f997a5c68b..f3fbf7ad5da 100644
--- a/packages/web3-eth-accounts/src/index.js
+++ b/packages/web3-eth-accounts/src/index.js
@@ -228,9 +228,9 @@ Accounts.prototype.signTransaction = function signTransaction(tx, privateKey, ca
 
             var result = {
                 messageHash: '0x' + Buffer.from(signedTx.getMessageToSign(true)).toString('hex'),
-                v: '0x' + Buffer.from(signedTx.v).toString('hex'),
-                r: '0x' + Buffer.from(signedTx.r).toString('hex'),
-                s: '0x' + Buffer.from(signedTx.s).toString('hex'),
+                v: '0x' + signedTx.v.toString('hex'),
+                r: '0x' + signedTx.r.toString('hex'),
+                s: '0x' + signedTx.s.toString('hex'),
                 rawTransaction: rawTransaction,
                 transactionHash: transactionHash
             };
diff --git a/test/e2e.method.signing.js b/test/e2e.method.signing.js
index 757cedf4dc5..bfc2e838c1d 100644
--- a/test/e2e.method.signing.js
+++ b/test/e2e.method.signing.js
@@ -2,6 +2,7 @@ var assert = require('assert');
 var Basic = require('./sources/Basic');
 var utils = require('./helpers/test.utils');
 var Web3 = utils.getWeb3();
+var {TransactionFactory} = require('@ethereumjs/tx');
 
 describe('transaction and message signing [ @E2E ]', function() {
     let web3;
@@ -563,5 +564,43 @@ describe('transaction and message signing [ @E2E ]', function() {
             done(error)
         }
     });
-});
 
+    it('accounts.signTransaction returning valid v r s values', async function(){
+
+        const source = wallet[0].address;
+        const destination = wallet[1].address;
+
+        const txCount = await web3.eth.getTransactionCount(source);
+        const networkId = await web3.eth.net.getId();
+        const chainId = await web3.eth.getChainId();
+
+
+        const customCommon = {
+            baseChain: 'mainnet',
+            customChain: {
+                name: 'custom-network',
+                networkId: networkId,
+                chainId: chainId,
+            },
+            hardfork: 'petersburg',
+        };
+
+        const txObject = {
+            nonce:    web3.utils.toHex(txCount),
+            to:       destination,
+            value:    web3.utils.toHex(web3.utils.toWei('0.1', 'ether')),
+            gasLimit: web3.utils.toHex(21000),
+            gasPrice: web3.utils.toHex(web3.utils.toWei('10', 'gwei')),
+            common: customCommon
+        };
+
+        const signed = await web3.eth.accounts.signTransaction(txObject, wallet[0].privateKey);
+        
+        const data = Buffer.from(signed.rawTransaction.slice(2), "hex")
+        const tx = TransactionFactory.fromSerializedData(data);
+
+        assert(signed.v === ('0x' + tx.v.toString('hex')));
+        assert(signed.r === ('0x' + tx.r.toString('hex')));
+        assert(signed.s === ('0x' + tx.s.toString('hex')));
+    });
+});
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