UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                    Form 10-Q

(Mark One)*
[X] Quarterly report pursuant to section 13 or 15(d) of the Securities  Exchange
Act of 1934 for the  quarterly  period  ended March 31,  2000 or [ ]  Transition
report  pursuant to section 13 or 15(d) of the  Securities  Exchange Act of 1934
for the transition period from to

Commission file number              333-71073

                              IKON Receivables, LLC
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

          DELAWARE                                      23-2990188
--------------------------------------------------------------------------------
(State or other jurisdiction of                      (I.R.S. Employer
incorporation or organization)                      Identification No.)

                 1738 Bass Road, P.O. Box 9115, Macon, GA 31208
--------------------------------------------------------------------------------
                    (Address of principal executive offices)
                                   (Zip Code)

                                 (912) 471-2300
--------------------------------------------------------------------------------
              (Registrant's telephone number, including area code)
--------------------------------------------------------------------------------
              (Former name, former address and former fiscal year,
                          if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  shorter  period that the  registrant  was
required  to file  such  reports),  and  (2) has  been  subject  to such  filing
requirements for the past 90 days.

Yes   X   No

* Applicable only to corporate issuers:
Indicate the number of shares outstanding of each issuer's classes of common
stock, as of the latest practicable date. (Not applicable)

Registered Debt Outstanding as of May 11, 2000          $1,009,921,632.00

The registrant,  an indirect wholly owned  subsidiary of IKON Office  Solutions,
Inc. ("IKON"), meets the conditions set forth in General Instruction H(1)(a) and
(b) of Form 10-Q and is,  therefore,  filing with the reduced  disclosure format
contemplated thereby.

<PAGE>
                                      INDEX

                              IKON RECEIVABLES, LLC


PART I - FINANCIAL INFORMATION

     Item 1. Financial Statements

             Balance Sheets - March 31, 2000 (unaudited) and September 30,
             1999

             Statements of Income - Three and Six months ending March 31, 2000
             (unaudited)

             Statement of Cash Flow -- Six months ending March 31, 2000
             (unaudited)

             Notes to Financial Statements (unaudited)


     Item 2. Management's Discussion and Analysis of Financial Condition and
             Results of Operations

     Item 3. Quantitative and Qualitative Disclosures About Market Risk

PART II - OTHER INFORMATION

     Item 6. Exhibits and Reports on Form 8-K
<PAGE>
                         PART I . FINANCIAL INFORMATION
                         ------------------------------

Item 1: Financial Statements
----------------------------

                              IKON RECEIVABLES, LLC
                                 BALANCE SHEETS
                                 (in thousands)


<TABLE>
<CAPTION>
                                                       March 31,           September 30,
                                                         2000                   1999
                                                     (unaudited)
                                                     -----------           -----------
<S>                                                  <C>                   <C>
Assets

Investment in leases:
      Direct financing leases                        $ 1,445,105           $   827,842
      Less: Unearned income                             (206,949)             (120,076)
                                                     -----------           -----------
                                                       1,238,156               707,766

Cash                                                           1                26,694
Restricted Cash                                           76,551                29,625
Accounts receivable                                       33,185                24,057
Prepaid expenses and other assets                          4,269                 3,045
                                                     -----------           -----------
Total assets                                         $ 1,352,162           $   791,187
                                                     ===========           ===========

Liabilities and Member's Equity

Liabilities:
      Accounts payable and accrued expenses                                $         1
      Accrued interest                               $     3,030                 1,540
      Lease backed notes                               1,052,682               622,948
                                                     -----------           -----------
Total liabilities                                      1,055,712               624,489
                                                     -----------           -----------

Member's Equity:
      Contributed capital                                246,048               149,124
      Retained earnings                                   50,402                17,574
                                                     -----------           -----------
Total member's equity                                    296,450               166,698
                                                     -----------           -----------
Total liabilities and member's equity                $ 1,352,162           $   791,187
                                                     ===========           ===========
</TABLE>

See notes to financial statements.
<PAGE>
                              IKON RECEIVABLES, LLC
                              STATEMENTS OF INCOME
                                 (in thousands)
                                   (unaudited)




                                    Three Months Ended     Six Months Ended
                                      March 31, 2000        March 31, 2000
                                      --------------        --------------

Revenues:
     Finance income                      $35,104               $73,844
     Other income                            963                 1,864
                                         -------               -------
                                          36,067                75,708
                                         -------               -------

Expenses:
     Interest expense                     18,793                38,664
     Servicing fee expense                 2,133                 4,216
                                         -------               -------
                                          20,926                42,880
                                         -------               -------

Net income                               $15,141               $32,828
                                         =======               =======


See notes to financial statements
<PAGE>
                              IKON RECEIVABLES, LLC
                             STATEMENT OF CASH FLOWS
                                 (in thousands)
                                   (unaudited)


<TABLE>
<CAPTION>
                                                                   Six Months Ended
                                                                    March 31, 2000
                                                                   ----------------
<S>                                                                   <C>
Operating activities:
Net income                                                            $  32,828
Adjustments to reconcile net income to net
      cash provided by operating activities:
           Changes in operating assets and liabilities:
               Accounts receivabe                                        (9,128)
               Prepaid expenses and other assets                            905
               Accounts payable and accrued expenses                         (1)
               Accrued interest                                           1,489
                                                                      ---------
Net cash provided by operating activities                                26,093
                                                                      ---------

Cash flows from investing activities:
Collections on lease receivables, net of finance income                 339,286
                                                                      ---------
Net cash provided by investing activities                               339,286
                                                                      ---------

Cash flows from financing activities:
Proceeds from issuance of lease-backed notes                            697,466
Payments on lease-backed notes                                         (269,861)
Deposit to restricted cash                                              (46,926)
Capital Distribution to Sole Member                                    (772,751)
                                                                      ---------
Net cash used in financing activities                                  (392,072)
                                                                      ---------

Net decrease in Cash                                                    (26,693)
Cash at beginning of year                                                26,694
                                                                      ---------
Cash at end of period                                                 $       1
                                                                      =========

Supplemental noncash financing activities:
Noncash capital contributions                                         $ 869,675
                                                                      =========
</TABLE>

See notes to financial statements



<PAGE>
                              IKON RECEIVABLES, LLC
                          NOTES TO FINANCIAL STATEMENTS
                                 (in thousands)
                                   (unaudited)
1.   Basis of Presentation

     The  accompanying   unaudited  condensed   financial   statements  of  IKON
Receivables, LLC (the "Company") have been prepared in accordance with generally
accepted  accounting  principles  for  interim  financial  information  and  the
instructions  to Form 10-Q and Rule 10-01 of  Regulation  S-X. In the opinion of
management,   all  adjustments  (consisting  of  normal  recurring  adjustments)
considered  necessary  for a fair  statement of the results for interim  periods
have been included.  For further information,  refer to the financial statements
and footnotes  thereto  included in the Company's Annual Report on Form 10-K for
the year ended September 30, 1999.

2.   Capital Contributions

     IKON  Receivables-1,  LLC (the "Sole  Member") made an initial cash capital
contribution  of $1 to the  Company  on April 6,  1999.  Subsequently,  the Sole
Member  contributed a segregated pool of $819,572 of office  equipment leases or
contracts  and related  assets (the  "1999-1  Asset  Pool") to the Company as an
initial  transfer  of leases to the  Company.  After the  initial  transfer,  an
additional $45,941 of leases were added to the 1999-1 Asset Pool as substitution
for  $41,922  that were  cancelled  or  defaulted  subsequent  to April 1, 1999,
resulting in a net noncash  capital  contribution  of $4,019.  On September  30,
1999, the Company distributed $674,468 to its Sole Member.

     During the first six months of fiscal 2000,  the Sole Member  contributed a
second  segregated pool of $809,556 of office  equipment leases or contracts and
related assets (the "1999-2 Asset Pool") to the Company.  An additional $157,090
of leases were added to the combined  1999-1 Asset Pool and 1999-2 Asset Pool as
substitution for $96,971 that were cancelled or defaulted  subsequent to October
1, 1999, resulting in a net noncash capital contribution of $60,119.  During the
first six months of fiscal 2000,  the Company  distributed  $772,751 to its Sole
Member.

3.   Servicing Agreement

     The Company has a servicing agreement with IOS Capital Inc. ("IOS Capital")
for which IOS Capital  services  the 1999-1 and 1999-2  Asset Pools and provides
administrative  services to the Company.  The  servicing  fee is  calculated  by
multiplying  0.75% by the lesser of the  discounted  present value of performing
leases or the  outstanding  amount of the  lease-backed  notes (see Note 4). The
servicing  fee expense was $4,216 for the period  from  October 1, 1999  through
March 31, 2000.

<PAGE>
4.   Lease-Backed Notes

     In addition to the $622,948 of Lease-Backed  Notes outstanding at September
30, 1999, on October 7, 1999, the Company issued $235,326 in aggregate principal
amount of  6.14125%  Lease-Backed  Notes,  Class A-1 (the  "Class  A-1  Notes"),
$51,100 in aggregate  principal amount of 6.31%  Lease-Backed  Notes,  Class A-2
(the  "Class  A-2  Notes"),  $100,000  in  aggregate  principal  amount of 6.59%
Lease-Backed  Notes, Class A-3a (the "Class A-3a Notes"),  $240,891 in aggregate
principal  amount of variable rate  Lease-Backed  Notes,  Class A-3b (the "Class
A-3b Notes"),  and $72,278 in aggregate  principal amount of 6.88%  Lease-Backed
Notes,  Class A-4 (the "Class A-4 Notes" and, together with the Class A-1 Notes,
the  Class  A-2  Notes,  the  Class  A-3a  Notes,  the  Class  A-3b  Notes,  and
collectively the "1999-2  Notes").  The Class A-3b Notes are variable rate notes
paying  interest  at a rate of libor  plus  0.36%  (which we have fixed at 6.63%
through an interest  rate  swap).  The 1999-2  Notes were issued  pursuant to an
Indenture  dated as of October 1, 1999  between the Company,  IOS  Capital,  and
Harris Trust and Savings Bank, as Indenture Trustee. The Sole Member contributed
a  segregated  pool of  $809,556 of office  equipment  leases or  contracts  and
related  assets (the "1999-2  Asset Pool") to the Company.  The 1999-2 Notes are
collateralized  solely by the 1999-2 Asset Pool,  which  includes a portfolio of
chattel paper  composed of leases,  leases  intended as security  agreements and
installment  sales contracts  acquired or originated by IOS Capital (the "1999-2
Leases") together with the equipment financing portion of each periodic lease or
rental payment due under the 1999-2 Leases on or after the opening of business
on September 1, 1999, and all related casualty payments, retainable deposits,and
termination payments.  The 1999-2 Notes have certain credit enhancement features
available to noteholders  including a reserve account, an  overcollateralization
account and a noncancellable  insurance policy from Ambac Assurance  Corporation
with respect to the 1999-2 Notes.

     Payments on the 1999-2 Notes are due on the fifteenth day of each month (or
if that is not a Business Day, the next succeeding Business Day),  commencing on
November 15, 1999.  The 1999-2 Notes bear  interest  from October 7, 1999 at the
respective  interest rates specified  above.  The interest rate is calculated on
the basis of a year of 360 days comprised of twelve 30-day months (except in the
case of the Class A-1 Notes and the Class A-3b Notes, for which interest will be
calculated  on the basis of a year of 360 days and the actual  number of days in
the interest  period)  payable on the payment date. On each payment date, to the
extent  funds  are  available   therefore  from  the  collection  of  the  lease
receivables,  principal  payment will be made to  noteholders  in the  following
priority: (i) to the Class A-1 noteholders only, until the outstanding principal
amount on the Class A-1 Notes has been  reduced to zero,  then (ii) to the Class
A-2 noteholders  only,  until the outstanding  principal amount on the Class A-2
Notes has been reduced to zero,  then (iii) to the Class A-3  noteholders  only,
until the outstanding  principal  amount on the Class A-3 Notes has been reduced
to zero,  and then  (iv) to the  Class A-4  noteholders,  until the  outstanding
principal  amount on the Class A-4 Notes has been reduced to zero. Each class of
1999-2 Notes will be payable in full on the  applicable  stated  maturity  date,
which is as follows: Class A-1 Notes - October 2000, Class A-2 Notes - May 2001,
Class A-3a Notes - August 2003,  Class A-3b Notes - August  2003,  and Class A-4
Notes - November 2005. However, if all payments are made on the 1999-2 Leases as
scheduled,  final  payment on the 1999-2  Notes will be earlier  than the stated
maturity  dates.  The Company may, on any payment date,  redeem the 1999-2 Notes
when the  total  discounted  lease  balance  is less than or equal to 10% of the
total discounted lease balance as of September 1, 1999.

<PAGE>

     IOS  Capital  services  the 1999-2  Leases  pursuant to an  Assignment  and
Servicing  Agreement by and among IOS Capital,  as Originator and Servicer,  the
Sole Member, as Seller, and the Company, as Issuer. IOS Capital may delegate its
servicing  responsibilities  to one or more  sub-servicers,  but such delegation
does not  relieve IOS  Capital of its  liabilities  with  respect  thereto.  IOS
Capital retains  possession of the 1999-2 Leases and related files, and receives
a monthly service fee from the Company for servicing the 1999-2 Leases.

     The average  interest rate on all the  lease-backed  notes  outstanding  at
March 31,  2000 was 6.3%.  Interest  paid  amounted  to  $37,174  for the period
October 1, 1999 through March 31, 2000.


5. Subsequent Event

In May 2000,  IKON  Receivables,  LLC filed a  registration  statement  with the
Securities  and  Exchange  Commission  to  register  the sale of  $2,000,000  of
lease-backed  notes.  Each  series  of  notes  which  may be  issued  under  the
registration statement will be issued pursuant to an indenture.




<PAGE>

Item 2: Management's Discussion and Analysis of Financial Condition and Results
        of Operations

Pursuant to General  Instruction H(2)(a) of Form 10-Q, the following analysis of
the results of operations is presented in lieu of  Management's  Discussion  and
Analysis of Financial  Condition and Results of  Operations.  All amounts are in
thousands unless otherwise noted.

     IKON Receivables, LLC (the "Company") is a special purpose Delaware limited
liability  company,  all of the  membership  interests in which are held by IKON
Receivables-1,  LLC ("Sole  Member"),  also a special purpose  Delaware  limited
liability company.  All of the membership interests in the Sole Member are owned
by IOS Capital, Inc. ("IOS Capital"),  a wholly owned finance subsidiary of IKON
Office Solutions,  Inc.  ("IKON"),  a publicly traded office technology  company
with fiscal 1999  revenues of $5.5  billion.  The Company was  organized  in the
State of  Delaware  on  January  20,  1999 and is  managed  by IKON  Receivables
Funding, Inc. (the "Manager").

     On May 19, 1999, the Company issued $304,474 aggregate  principal amount of
5.11% Lease-Backed  Notes, Class A-1 (the "Class A-1  Notes"),$61,579  aggregate
principal amount of 5.60% Lease-Backed Notes, Class A-2 (the "Class A-2 Notes"),
$304,127 aggregate  principal amount of 5.99% Lease-Backed Notes, Class A-3 (the
"Class A-3 Notes"), and $81,462 aggregate principal amount of 6.23% Lease-Backed
Notes,  Class A-4 (the "Class A-4 Notes" and, together with the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes, the "1999-1 Notes").  The 1999-1 Notes
were  issued  pursuant  to an  Indenture  dated as of April 1, 1999  between the
Company,  IOS Capital,  and Harris Trust and Savings Bank, as Indenture Trustee.
The 1999-1  Notes are  collateralized  solely by the 1999-1  Asset  Pool,  which
includes a portfolio of chattel  paper  composed of leases,  leases  intended as
security  agreements and installment  sales contracts  acquired or originated by
IOS Capital (the "1999-1 Leases") (together with the equipment financing portion
of each periodic lease or rental payment due under the 1999-1 Leases on or after
the opening of business on April 1, 1999),  and all related  casualty  payments,
retainable  deposits,  and termination  payments.  The 1999-1 Notes have certain
credit  enhancement  features  available  to  noteholders  including  a  reserve
account, an overcollateralization  account and a noncancellable insurance policy
from Ambac Assurance Corporation with respect to the 1999-1 Notes.

<PAGE>


     Payments on the 1999-1 Notes are due on the fifteenth day of each month (or
if that is not a Business Day, the next succeeding Business Day),  commencing on
June  15,  1999.  The  1999-1  Notes  bear  interest  from  May 25,  1999 at the
respective  fixed per annum interest rates specified above. The interest rate is
calculated on the basis of a year of 360 days  comprised of twelve 30-day months
(except  in the  case  of the  Class  A-1  Notes,  for  which  interest  will be
calculated  on the basis of a year of 360 days and the actual  number of days in
the interest  period)  payable on the payment date. On each payment date, to the
extent  funds  are  available   therefore  from  the  collection  of  the  lease
receivables,  principal  payments will be made to  noteholders  in the following
priority: (i) to the Class A-1 noteholders only, until the outstanding principal
amount on the Class A-1 Notes has been  reduced to zero,  then (ii) to the Class
A-2 noteholders  only,  until the outstanding  principal amount on the Class A-2
Notes has been reduced to zero,  then (iii) to the Class A-3  noteholders  only,
until the outstanding  principal  amount on the Class A-3 Notes has been reduced
to zero,  and then  (iv) to the  Class A-4  noteholders,  until the  outstanding
principal  amount on the Class A-4 Notes has been reduced to zero. Each class of
1999-1 Notes will be payable in full on the  applicable  stated  maturity  date,
which is as  follows:  Class A-1 Notes - June 2000,  Class A-2 Notes,  Class A-3
Notes and Class A-4 Notes - May 2005.  However,  if all payments are made on the
1999-1  Leases as  scheduled,  final payment on the 1999-1 Notes will be earlier
than the stated maturity dates. The Company may, on any payment date, redeem the
1999-1 Notes when the total  discounted  lease  balance is less than or equal to
10% of the total discounted lease balance as of April 1, 1999.

     IOS  Capital  services  the 1999-1  Leases  pursuant to an  Assignment  and
Servicing  Agreement by and among IOS Capital,  as Originator and Servicer,  the
Sole Member, as Seller, and the Company, as Issuer. IOS Capital may delegate its
servicing  responsibilities  to one or more  sub-servicers,  but such delegation
does not  relieve IOS  Capital of its  liabilities  with  respect  thereto.  IOS
Capital retains  possession of the 1999-1 Leases and related files, and receives
a monthly service fee from the Company for servicing the 1999-1 Leases.

     On October 7, 1999,  the Company  issued  $235,326 in  aggregate  principal
amount of  6.14125%  Lease-Backed  Notes,  Class A-1 (the  "Class  A-1  Notes"),
$51,100 in aggregate principal amount of 6.31% Lease-Backed Notes, Class A-2(the
"Class A-2 Notes"), $100,000 in aggregate principal amount of 6.59% Lease-Backed
Notes,  Class A-3a (the "Class A-3a  Notes"),  $240,891 in  aggregate  principal
amount of variable rate Lease-Backed Notes, Class A-3b (the "Class A-3b Notes"),
and $72,278 in aggregate principal amount of 6.88% Lease-Backed Notes, Class A-4
(the "Class A-4 Notes"  and,  together  with the Class A-1 Notes,  the Class A-2
Notes,  the Class A-3a Notes,  Class A-3b Notes,  and  collectively  the "1999-2
Notes").  The Class A-3b Notes are variable rate notes paying interest at a rate
of libor plus  0.36%  (which we have fixed at 6.63%  through  an  interest  rate
swap). The 1999-2 Notes were issued pursuant to an Indenture dated as of October
1, 1999 between the Company,  IOS Capital and Harris Trust and Savings  Bank, as
Indenture Trustee.  The Sole Member contributed a segregated pool of $809,556 of
office  equipment  leases or contracts  and related  assets (the  "1999-2  Asset
Pool") to the Company. The 1999-2 Notes are collateralized  solely by the 1999-2
Asset Pool,  which  includes a portfolio  of chattel  paper  composed of leases,
leases intended as security  agreements and installment sales contracts acquired
or originated by IOS Capital (the "1999-2  Leases")  together with the equipment
financing  portion of each periodic lease or rental payment due under the 1999-2
Leases on or after the opening of business on September 1, 1999, and all related
casualty payments,  retainable deposits,  and termination  payments.  The 1999-2
Notes  have  certain  credit  enhancement   features  available  to  noteholders
including a reserve account, an
<PAGE>

overcollateralization  account and a noncancellable  insurance policy from Ambac
Assurance Corporation with respect to the 1999-2 Notes.

     Payments on the 1999-2 Notes are due on the fifteenth day of each month (or
if that is not a Business Day, the next succeeding Business Day),  commencing on
November 15, 1999.  The 1999-2 Notes bear  interest  from October 7, 1999 at the
respective  interest rates specified  above.  The interest rate is calculated on
the basis of a year of 360 days comprised of twelve 30-day months (except in the
case of the Class A-1 Notes and the Class A-3b Notes, for which interest will be
calculated  on the basis of a year of 360 days and the actual  number of days in
the interest  period)  payable on the payment date. On each payment date, to the
extent  funds  are  available   therefore  from  the  collection  of  the  lease
receivables,  principal  payments will be made to  noteholders  in the following
priority: (i) to the Class A-1 Noteholders only, until the outstanding principal
amount on the Class A-1 Notes has been  reduced to zero,  then (ii) to the Class
A-2 noteholders  only,  until the outstanding  principal amount on the Class A-2
Notes has been reduced to zero,  then (iii) to the Class A-3  noteholders  only,
until the outstanding  principal  amount on the Class A-3 Notes has been reduced
to zero,  and then  (iv) to the  Class A-4  noteholders,  until the  outstanding
principal  amount on the Class A-4 Notes has been reduced to zero. Each class of
1999-2 Notes will be payable in full on the  applicable  stated  maturity  date,
which is as follows: Class A-1 Notes - October 2000, Class A-2 Notes - May 2001,
Class A-3a Notes - August 2003,  Class A-3b Notes - August  2003,  and Class A-4
Notes - November 2005. However, if all payments are made on the 1999-2 Leases as
scheduled,  final  payment on the 1999-2  Notes will be earlier  than the stated
maturity  dates.  The Company may, on any payment date,  redeem the 1999-2 Notes
when the  total  discounted  lease  balance  is less than or equal to 10% of the
total discounted lease balance as of September 1, 1999.

     IOS  Capital  services  the 1999-2  Leases  pursuant to an  Assignment  and
Servicing  Agreement by and among IOS Capital,  as Originator and Servicer,  the
Sole Member, as Seller, and the Company, as Issuer. IOS Capital may delegate its
servicing  responsibilities  to one or more  sub-servicers,  but such delegation
does not  relieve IOS  Capital of its  liabilities  with  respect  thereto.  IOS
Capital retains  possession of the 1999-2 Leases and related files, and receives
a monthly service fee from the Company for servicing the 1999-2 Leases.

     Interest  income  earned on the Asset Pool is expected  to offset  interest
expense on the Notes,  amortization  of debt issuance  costs and discount on the
notes and the fees  charged  by IOS  Capital  for  servicing  the Asset Pool and
providing  administrative  services to the Company. For the quarter ending March
31, 2000, income generated from the Asset Pool was approximately  $35,104, other
income earned was $963,  while  interest  expense during the quarter was $18,793
and  administrative  expenses were $2,133.  Collections on the lease receivables
were $160,254 and the Company repaid $131,220 of principal on the Notes.  During
the six months ended March 31, 2000,  income  generated  from the Asset Pool was
$73,844,  other income earned was $1,864, while interest expense was $38,664 and
administrative expenses were $4,216. Collections on lease receivables during the
six months ended March 31, 2000,  were $339,286 and the Company repaid  $269,861
of principal on the Notes. The Company  portfolio of leases has an average yield
of 10.7% at March 31, 2000,  while the Company's  weighted average interest rate
of its total debt cost during the quarter  ending  March 31, 2000 is 6.6%.  This
rate  differential,  in  addition  to the  overcollateralization  of  the  lease
portfolio,  gives  rise to the 42% net income to  revenue  relationship  for the
quarter.

<PAGE>

Subsequent Event

In May 2000,  IKON  Receivables,  LLC filed a  registration  statement  with the
Securities  and  Exchange  Commission  to  register  the sale of  $2,000,000  of
lease-backed  notes.  Each  series  of  notes  which  may be  issued  under  the
registration statement will be issued pursuant to an indenture.

Impact of Year 2000

April 2000 Update.  Through  April 30, 2000,  the  Company's  and IOS  Capital's
operations are fully functioning and have not experienced any significant issues
associated  with  the Year  2000  problem.  For  further  information,  refer to
Management's  Discussion  and  Analysis of  Financial  Condition  and Results of
Operations  included in the Company's report on Form 10-Q/A for the period ended
December 31, 1999 and the  Company's  Annual  Report on Form 10-K for its fiscal
year ended September 30, 1999.


Pending Accounting Changes

     In June 1998, the FASB issued Statement No. 133, "Accounting for Derivative
Instruments and Hedging Activities" (SFAS 133), which establishes accounting and
reporting standards for derivative  instruments and hedging activities.  It will
require us to recognize  all  derivatives  as either assets or  liabilities  and
measure the instruments at fair value. The statement is effective for all fiscal
quarters of fiscal years  beginning  after June 15, 2000. The Company intends to
adopt the  standard on October 1, 2000.  The Company does not believe the effect
of adoption will be material.

         In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff  Accounting  Bulletin  (SAB) No. 101,  "Revenue  Recognition  in Financial
Statements".  The SAB  summarizes  certain  of the  staff's  views  in  applying
generally accepted accounting principles to revenue recognition in the financial
statements.  We are currently  assessing SAB 101 and can not quantify the impact
on our Company,  if any, at this time. Any change resulting from the application
of SAB 101 will be reported as a change in  accounting  principle in  accordance
with APB Opinion No. 20, accounting  changes. We are required to begin reporting
changes,  if any,  to our  revenue  recognition  policy in the first  quarter of
fiscal year 2001.

Item 3: Quantitative and Qualitative Disclosures About Market Risk

Pursuant to General Instruction H(2)(c) of Form 10-Q the information required by
this item has been omitted.


<PAGE>

                           FORWARD-LOOKING INFORMATION

This  Report  includes  or  incorporates  by  reference  information  which  may
constitute   forward-looking  statements  within  the  meaning  of  the  federal
securities laws.  Although the Company  believes the  expectations  contained in
such forward-looking  statements are reasonable,  it can give no assurances that
such expectations will prove correct. Such forward-looking  information is based
upon  management's  current plans or expectations  and is subject to a number of
risks  and  uncertainties  that  could   significantly   affect  current  plans,
anticipated  actions and the Company's and/or IKON's future financial  condition
and results.  These risks and  uncertainties,  include,  but are not limited to,
factors which may affect the Company's  ability to recoup the full amount due on
the  1999-1 and  1999-2  Leases  (such as lessee  defaults  or factors  impeding
recovery  efforts),  and risks and  uncertainties  affecting the business of IOS
Capital  and/or IKON as set forth in IOS Capital's and IKON's  periodic  reports
filed with the Securities & Exchange Commission,  including, but not limited to,
risks and  uncertainties  relating to  conducting  operations  in a  competitive
environment; delays, difficulties,  management transitions and employment issues
associated  with  consolidation  of,  and/or  changes  in  business  operations;
managing  the  integration  of  existing  and  acquired  companies;   risks  and
uncertainties  associated  with  existing or future  vendor  relationships;  and
general economic conditions.  Certain additional risks and uncertainties are set
forth in the  Company's  fiscal 1999  Annual  Report on Form 10-K filed with the
Securities  and Exchange  Commission.  As a consequence of these and other risks
and  uncertainties,  current  plans,  anticipated  actions and future  financial
condition  and  results  may  differ  materially  from  those  expressed  in any
forward-looking statements made by or on behalf of the Company.


<PAGE>
                           PART II. OTHER INFORMATION


Item 6. Exhibits and Reports on Form 8-K

     (a)  The  following  Exhibits  are  furnished  pursanant  to  Item  601  of
          Regulation S-K:

          Exhibit No. 27 Financial Data Schedule

     (b)  Reports on Form 8-K

          On January 5, 2000,  the Company filed a Current  Report on Form 8-K/A
          to  file,  under  Item  4  of  the  form,  information  regarding  the
          appointment of PricewaterhouseCoopers  LLP as its independent auditors
          for the fiscal year ending  September  30, 2000 to replace the firm of
          Ernst & Young  LLP who  were  dismissed  as  auditors  of the  Company
          effective  with  their  completion  of their  audit  of the  Company's
          financial statements for the fiscal year ended September 30, 1999


<PAGE>
                                   SIGNATURES


Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned,  thereunto duly authorized. This report has also been signed by the
undersigned in his capacity as the chief accounting officer of the Registrant.


                                            IKON RECEIVABLES, LLC

                                            By: IKON RECEIVABLES FUNDING, INC.
                                                As Manager


      Date  May 15, 2000                    /s/ Jack F. Quinn
      -------------------                   ----------------------
                                            Jack F. Quinn
                                            Treasurer