diff --git a/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py b/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py
index 3b22eb2..3bc8dc4 100644
--- a/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py
+++ b/erpnext/hr/doctype/leave_allocation/test_leave_allocation.py
@@ -1,12 +1,13 @@
 from __future__ import unicode_literals
 import frappe
 import unittest
-from frappe.utils import getdate
+from frappe.utils import nowdate, add_months, getdate
+from erpnext.hr.doctype.leave_type.test_leave_type import create_leave_type
 
 class TestLeaveAllocation(unittest.TestCase):
 	def test_overlapping_allocation(self):
 		frappe.db.sql("delete from `tabLeave Allocation`")
-				
+
 		employee = frappe.get_doc("Employee", frappe.db.sql_list("select name from tabEmployee limit 1")[0])
 		leaves = [
 			{
@@ -18,7 +19,7 @@
 				"from_date": getdate("2015-10-01"),
 				"to_date": getdate("2015-10-31"),
 				"new_leaves_allocated": 5,
-				"docstatus": 1			
+				"docstatus": 1
 			},
 			{
 				"doctype": "Leave Allocation",
@@ -28,17 +29,17 @@
 				"leave_type": "_Test Leave Type",
 				"from_date": getdate("2015-09-01"),
 				"to_date": getdate("2015-11-30"),
-				"new_leaves_allocated": 5			
+				"new_leaves_allocated": 5
 			}
 		]
 
 		frappe.get_doc(leaves[0]).save()
 		self.assertRaises(frappe.ValidationError, frappe.get_doc(leaves[1]).save)
-		
-	def test_invalid_period(self):		
+
+	def test_invalid_period(self):
 		employee = frappe.get_doc("Employee", frappe.db.sql_list("select name from tabEmployee limit 1")[0])
-		
-		d = frappe.get_doc({
+
+		doc = frappe.get_doc({
 			"doctype": "Leave Allocation",
 			"__islocal": 1,
 			"employee": employee.name,
@@ -46,15 +47,15 @@
 			"leave_type": "_Test Leave Type",
 			"from_date": getdate("2015-09-30"),
 			"to_date": getdate("2015-09-1"),
-			"new_leaves_allocated": 5			
+			"new_leaves_allocated": 5
 		})
-		
+
 		#invalid period
-		self.assertRaises(frappe.ValidationError, d.save)
-	
+		self.assertRaises(frappe.ValidationError, doc.save)
+
 	def test_allocated_leave_days_over_period(self):
 		employee = frappe.get_doc("Employee", frappe.db.sql_list("select name from tabEmployee limit 1")[0])
-		d = frappe.get_doc({
+		doc = frappe.get_doc({
 			"doctype": "Leave Allocation",
 			"__islocal": 1,
 			"employee": employee.name,
@@ -62,10 +63,56 @@
 			"leave_type": "_Test Leave Type",
 			"from_date": getdate("2015-09-1"),
 			"to_date": getdate("2015-09-30"),
-			"new_leaves_allocated": 35			
+			"new_leaves_allocated": 35
 		})
-		
-		#allocated leave more than period 
-		self.assertRaises(frappe.ValidationError, d.save)
-		
+		#allocated leave more than period
+		self.assertRaises(frappe.ValidationError, doc.save)
+
+	def test_carry_forward_allocation(self):
+		frappe.db.sql("delete from `tabLeave Allocation`")
+
+		employee = frappe.get_doc("Employee", frappe.db.sql_list("select name from tabEmployee limit 1")[0])
+		doc = frappe.get_doc({
+			"doctype": "Leave Allocation",
+			"__islocal": 1,
+			"employee": employee.name,
+			"employee_name": employee.employee_name,
+			"leave_type": "_Test Leave Type Carry Forward",
+			"from_date": nowdate(),
+			"to_date": add_months(nowdate(),-12),
+			"new_leaves_allocated": 10
+		})
+		doc.save()
+		doc = frappe.get_doc({
+			"doctype": "Leave Allocation",
+			"__islocal": 1,
+			"employee": employee.name,
+			"employee_name": employee.employee_name,
+			"leave_type": "_Test Leave Type Carry Forward",
+			"from_date": nowdate(),
+			"to_date": add_months(now_date(),12),
+			"carry_forward": 1
+		})
+		doc.save()
+		self.assertEquals(doc.total_leaves_allocated, 10)
+
+def create_leave_allocation(**args):
+	args = frappe._dict(args)
+	if not frappe.db.exists("Leave Type", "_Test Leave Type"):
+		leave_type = create_leave_type(args.leave_type)
+		leave_type.insert()
+
+	employee = frappe.get_doc("Employee", frappe.db.sql_list("select name from tabEmployee limit 1")[0])
+	leave_allocation = frappe.get_doc({
+		"doctype": "Leave Allocation",
+		"__islocal": 1,
+		"employee": employee.name,
+		"employee_name": employee.employee_name,
+		"leave_type": args.leave_type or "_Test Leave Type",
+		"from_date": args.from_date or nowdate(),
+		"to_date": args.to_date or add_months(nowdate(), 12),
+		"new_leaves_allocated": args.new_leaves_allocated or 20
+	})
+	return leave_allocation
+
 test_dependencies = ["Employee", "Leave Type"]
\ No newline at end of file