diff --git a/tests/test_hook_ledger_entry.py b/tests/test_hook_ledger_entry.py
index e2883324181f15b5468f79141bc6b8842daf7343..4b07ae8ece0f7da9e653de468933159017e66691 100644
--- a/tests/test_hook_ledger_entry.py
+++ b/tests/test_hook_ledger_entry.py
@@ -92,6 +92,38 @@ def test_complex_template():
         "  ;Entity: T-T",
     ]
 
+def test_variable_whitespace_cleaned():
+    # There are two critical parts of this to avoid making malformed Ledger
+    # entries:
+    # * Ensure newlines become non-newline whitespace so we don't write
+    #   malformed lines.
+    # * Collapse multiple spaces into one so variables in account names
+    #   can't make malformed account lines by having a premature split
+    #   between the account name and amount.
+    render_vars = template_vars('W\t\tS', '125.50', other_vars={
+        'entity': 'W\fS',
+        'program': 'Spectrum\r\nDefense',
+        'txid': 'ABC\v\tDEF',
+    })
+    lines = render_lines(
+        render_vars, 'Complex',
+        date_fmt='%Y-%m-%d',
+        signed_currencies=['USD'],
+    )
+    assert lines == [
+        "",
+        "2015-03-14 W S",
+        "  ;Tag: Value",
+        "  ;TransactionID: ABC DEF",
+        "  Accrued:Accounts Receivable  $125.50",
+        "  ;Entity: Supplier",
+        "  Income:Donations:Spectrum Defense  $-119.85",
+        "  ;Program: Spectrum Defense",
+        "  ;Entity: W S",
+        "  Income:Donations:General  $-5.65",
+        "  ;Entity: W S",
+    ]
+
 def test_balancing():
     lines = render_lines(template_vars('FF', '1.01'), 'FiftyFifty')
     assert lines == [