diff --git a/Ledger/Parse.hs b/Ledger/Parse.hs
index 1f2faa5b7..1005d44d1 100644
--- a/Ledger/Parse.hs
+++ b/Ledger/Parse.hs
@@ -85,9 +85,9 @@ parseLedger reftime inname intxt = do
 
 
 ledgerFile :: GenParser Char LedgerFileCtx (ErrorT String IO (RawLedger -> RawLedger))
-ledgerFile = do items <- many1 ledgerItem
+ledgerFile = do items <- many ledgerItem
                 eof
-                return $ liftM (foldr1 (.)) $ sequence items
+                return $ liftM (foldr (.) id) $ sequence items
     where 
       -- As all ledger line types can be distinguished by the first
       -- character, excepting transactions versus empty (blank or
diff --git a/Tests.hs b/Tests.hs
index f480d245c..6840f8b49 100644
--- a/Tests.hs
+++ b/Tests.hs
@@ -558,6 +558,15 @@ tests = [
     (ltdate $ head $ ledger_txns rl) `is` fromGregorian 2009 1 1
     return ()
 
+  ,"ledgerFile" ~: do
+    let now = getCurrentLocalTime
+    assertBool "ledgerFile should parse an empty file" $ (isRight $ parseWithCtx ledgerFile "")
+    r <- rawLedgerFromString "" -- don't know how to get it from ledgerFile
+    assertBool "ledgerFile parsing an empty file should give an empty ledger" $ null $ ledger_txns r
+
+  ,"ledgerHistoricalPrice" ~: do
+    parseWithCtx ledgerHistoricalPrice price1_str `parseis` price1
+
   ,"ledgerTransaction" ~: do
     parseWithCtx ledgerTransaction entry1_str `parseis` entry1
     assertBool "ledgerTransaction should not parse just a date"
@@ -566,10 +575,7 @@ tests = [
                    $ isLeft $ parseWithCtx ledgerTransaction "2009/1/1 a\n"
     let t = parseWithCtx ledgerTransaction "2009/1/1 a ;comment\n b 1\n"
     assertBool "ledgerTransaction should not include a comment in the description"
-                   $ either (const False) ((== "a") . ltdescription) p
-
-  ,"ledgerHistoricalPrice" ~: do
-    parseWithCtx ledgerHistoricalPrice price1_str `parseis` price1
+                   $ either (const False) ((== "a") . ltdescription) t
 
   ,"ledgerposting" ~: do
     parseWithCtx ledgerposting rawposting1_str `parseis` rawposting1