SECURITIES AND EXCHANGE COMMISSION
                     Washington, D.C. 20549
                                
                           FORM 10-KSB
                                
             Annual Report Under Section 13 or 15(d)
             Of The Securities Exchange Act Of 1934
                                
          For the Fiscal Year Ended:  December 31, 1995
                                
                Commission file number:  0-14263
                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
         (Name of Small Business Issuer in its Charter)

          State of Minnesota                  41-1511293
     (State or other Jurisdiction of       (I.R.S. Employer)
      Incorporation or Organization)       Identification No.)

  1300 Minnesota World Trade Center, St. Paul, Minnesota 55101
            (Address of Principal Executive Offices)

                          (612) 227-7333
                   (Issuer's telephone number)

Securities registered pursuant to Section 12(b) of the Act:
                                 Name of each exchange on
     Title of each class             which registered
             None                          None

Securities registered pursuant to Section 12(g) of the Act:

                    Limited Partnership Units
                        (Title of class)
                                
Check  whether  the issuer (1) filed all reports required  to  be
filed  by Section 13 or 15(d) of the Securities Exchange  Act  of
1934  during the past 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

Check if disclosure of delinquent filers in response to Rule  405
of  Regulation  S-B  is  not  contained  in  this  Form,  and  no
disclosure  will  be contained, to the best of  the  registrant's
knowledge,   in   definitive  proxy  or  information   statements
incorporated by reference in Part III of this Form 10-KSB or  any
amendment to this Form 10-KSB.     [X]

The  Issuer's  revenues  for year ended December  31,  1995  were
$450,567.

As  of  February 29, 1996, there were 7,092.128 Units of  limited
partnership interest in the registrant outstanding and  owned  by
nonaffiliates  of  the registrant, which Units had  an  aggregate
market  value (based solely on the price at which they were  sold
since there is no ready market for such Units) of $7,092,128.

               DOCUMENTS INCORPORATED BY REFERENCE

 The registrant has not incorporated any documents by reference
                        into this report.
                         
       
         Transitional Small Business Disclosure Format:
                                
                      Yes          No     [X]


                             PART I


ITEM 1.   DESCRIPTION OF BUSINESS.

        AEI  Real  Estate  Fund  85-A  Limited  Partnership  (the
"Partnership" or the "Registrant") is a limited partnership which
was  organized pursuant to the laws of the State of Minnesota  on
April  15,  1985.   The  registrant is  comprised  of  Net  Lease
Management  85-A, Inc. (NLM) as Managing General Partner,  Robert
P.  Johnson as the Individual General Partner, and purchasers  of
partnership  units as Limited Partners.  The Partnership  offered
for  sale up to $7,500,000 of limited partnership interests  (the
"Units")  (7,500  Units  at  $1,000  per  Unit)  pursuant  to   a
registration   statement  effective  February   8,   1985.    The
Partnership  commenced operations on April15, 1985  when  minimum
subscriptions  of  1,300 Limited Partnership  Units  ($1,300,000)
were  accepted.  The Partnership's offering terminated  June  20,
1985  when  the  maximum  subscription  limit  of  7,500  Limited
Partnership Units ($7,500,000) was reached.

        The Partnership was organized to acquire, initially on  a
debt-free   basis,  existing  and  newly  constructed  commercial
properties located in the United States, to lease such properties
to  tenants under triple net leases, to hold such properties  and
to  eventually sell such properties.  From subscription proceeds,
the  Partnership  purchased eight properties,  including  partial
interests in two properties, totaling $6,103,065.  The balance of
the   subscription  proceeds  was  applied  to  organization  and
syndication  costs,  working capital reserves and  distributions,
which  represented a return of capital.  The properties  are  all
commercial,  single  tenant buildings  leased  under  triple  net
leases.

       The Partnership will hold its properties until the General
Partners  determine  that the sale or other  disposition  of  the
properties   is   advantageous  in  view  of  the   Partnership's
investment  objectives.  In deciding whether to sell  properties,
the  General  Partners will consider factors  such  as  potential
appreciation,  net  cash flow and income tax considerations.   In
addition,  certain lessees have been granted options to  purchase
properties  after  a  specified portion of  the  lease  term  has
elapsed.   It is anticipated that the Partnership will  sell  its
properties  within twelve years after acquisition.  At  any  time
prior to selling the properties, the Partnership may mortgage one
or  more  of its properties in amounts not exceeding 50%  of  the
fair market value of the property.

Leases

       Although there are variations in the specific terms of the
leases,  the following is a summary of the general terms  of  the
Partnership's  leases.   The properties  are  leased  to  various
tenants   under  noncancelable  triple  net  leases,  which   are
classified  as operating leases.  Under a triple net  lease,  the
lessee  is  responsible  for all real  estate  taxes,  insurance,
maintenance,  repairs and operating expenses  for  the  property.
The  initial  lease  terms are for 5 to  20  years.   The  leases
provide  for  base  annual rental payments,  payable  in  monthly
installments,  and  contain  rent  clauses  which   entitle   the
Partnership to receive additional rent in future years  based  on
stated  rent  increases  or if gross receipts  for  the  property
exceed  certain  specified amounts, among other conditions.   The
leases  provide for one to four five-year renewal options subject
to the same terms and conditions as the initial lease.

         On   September  23,  1993,  the  Partnership  sold   the
Fuddruckers  restaurant in Milwaukee, Wisconsin to  an  unrelated
third  party.   The Partnership recognized net sale  proceeds  of
$993,568 which resulted in a net gain of $99,866.  At the time of
sale,  the  cost  and  related accumulated  depreciation  of  the
property was $1,121,252 and $227,550, respectively.  The majority
of  the  net  proceeds  from this sale were  distributed  to  the
Limited and General Partners in 1993.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

        In February, 1994, the Partnership sold 4,899 square feet
of land from the Perkins property in Bozeman, Montana pursuant to
a  Right of Way Agreement with the State of Montana Department of
Transportation.   The Partnership received net sale  proceeds  of
$36,605  which  resulted in a net gain of $5,641.   The  original
cost of the parcel of land was $30,964.

        On September 19, 1994, the Partnership sold the remainder
of the Perkins' property to the lessee.  The Partnership received
net  sale proceeds of $1,227,101 which resulted in a net gain  of
$632,338.   At the time of sale, the cost and related accumulated
depreciation   of  the  property  was  $796,901   and   $202,138,
respectively.   In February, 1995, the Managing  General  Partner
filed  a  proxy statement to propose an Amendment to the  Limited
Partnership  Agreement  that  would  allow  the  Partnership   to
reinvest the net proceeds in additional properties. The Amendment
passed with a majority of Units voting in favor of the Amendment.

        On  March  20,  1995, the Partnership sold  the  Hardee's
restaurant in Sierre Vista, Arizona  to an unrelated third party.
The  Partnership  received net sales proceeds of $296,020,  which
resulted in a net loss of $166,000, which was recognized in 1994.

       On July 19, 1995, the Partnership sold the Fair Muffler in
Ashwaubenon,  Wisconsin to the lessee.  The Partnership  received
net  sale proceeds of $299,874, which resulted in a net  gain  of
$130,181.   At the time of sale, the cost and related accumulated
depreciation   of   the  property  was  $230,134   and   $60,441,
respectively.

        On  August  28, 1995, the Partnership sold  the  Hardee's
restaurant  in  Wayne, Nebraska to the lessee.   The  Partnership
received net sales proceeds of $474,530 which resulted in  a  net
gain  of  $150,989.  At the time of sale, the  cost  and  related
accumulated  depreciation  of  the  property  was  $447,944   and
$124,403, respectively.

        On  December  21,  1995,  the  Partnership  purchased  an
Applebee's  restaurant in Harlingen, Texas for  $1,393,470.   The
property is leased to Renaissant Development Corporation under  a
Lease Agreement with a primary term of 20 years and annual rental
payments of $156,000.

        On  February 14, 1996, the Partnership purchased an   80%
interest   in  a  Tractor  Supply  Company  store  in  Maryville,
Tennessee.   The purchase price was approximately $850,000.   The
property  is  leased  to  Tractor Supply Company  under  a  Lease
Agreement  with  a  primary term of 14 years  and  annual  rental
payments of $90,300.  The remaining interest in the property  was
purchased  by  AEI  Real Estate Fund XV Limited  Partnership,  an
affiliate of the Partnership.

Major Tenants

        During  1995,  four  of  the Partnership's  lessees  each
contributed  more  than  ten percent of the  Partnership's  total
rental  revenue.  The major tenants in aggregate contributed  91%
of  the  Partnership's  total rental  revenue  in  1995.   It  is
anticipated  that, based on the minimum rental payments  required
under  the  leases, each major tenant will continue to contribute
more  than ten percent of the Partnership's total rental  revenue
in  1996 and future years.  The only exception is Harwayne,  Inc.
will  not  continue to be a major tenant since  the  Hardee's  in
Wayne,  Nebraska was sold in 1995.  Any failure  of  these  major
tenants   or  business  concepts  could  materially  affect   the
Partnership's net income and cash distributions.

ITEM 1.   DESCRIPTION OF BUSINESS. (Continued)

Competition

        The  Partnership is a minor factor in the commercial real
estate  business.   There are numerous entities  engaged  in  the
commercial  real  estate  business which have  greater  financial
resources  than  the  Partnership.  At the time  the  Partnership
elects to dispose of its properties, the Partnership will  be  in
competition  with other persons and entities to find  buyers  for
its properties.

Employees

        The  Partnership  has  no direct  employees.   Management
services   are  performed  for  the  Partnership  by   AEI   Fund
Management, Inc., an affiliate of AFM.

ITEM 2.   DESCRIPTION OF PROPERTIES.

Investment Objectives

        The  Partnership's investment objectives were to  acquire
existing or newly-developed commercial properties throughout  the
United  States that offer the potential for (i) preservation  and
protection  of  the  Partnership's capital; (ii)  partially  tax-
deferred  cash distributions from operations which  may  increase
through  rent  participation clauses or mandated rent  increases;
and  (iii) long-term capital gains through appreciation in  value
of   the  Partnership's  properties  realized  upon  sale.    The
Partnership  does not have a policy, and there is no  limitation,
as  to the amount or percentage of assets that may be invested in
any  one  property.  However, to the extent possible, the General
Partners  attempt  to  diversify the type  and  location  of  the
Partnership's properties.

Description of Properties

        The  Partnership's properties are all commercial,  single
tenant  buildings.  All the properties were acquired on  a  debt-
free  basis and are leased to various tenants under noncancelable
triple net leases, which are classified as operating leases.  The
Partnership  holds  an  undivided  fee  simple  interest  in  the
properties.   At  any time prior to selling the  properties,  the
Partnership may mortgage one or more of its properties in amounts
not exceeding 50% of the fair market value of the property.

        The  Partnership's properties are subject to the  general
competitive conditions incident to the ownership of single tenant
investment  real estate.  Since each property is leased  under  a
long-term   lease,   there  is  little  competition   until   the
Partnership  decides to sell the property.   At  this  time,  the
Partnership will be competing with other real estate  owners,  on
both a national and local level, in attempting to find buyers for
the   properties.   In  the  event  of  a  tenant  default,   the
Partnership would be competing with other real estate owners, who
have  property vacancies, to attract a new tenant  to  lease  the
property.   The Partnership's tenants operate in industries  that
are  very  competitive and can be affected  by  factors  such  as
changes  in regional or local economies, seasonality and  changes
in consumer preference.

ITEM 2.   DESCRIPTION OF PROPERTIES. (Continued)

        The  following table is a summary of the properties  that
the Partnership acquired and owned as of December 31, 1995.

                                     Total Property
                         Purchase     Acquisition                 Annual Lease
Property                   Date         Costs        Lessee         Payment

Chi-Chi's Restaurant 
  St. Paul, MN                                       Chi-Chi's
   (45%)                12/13/85    $  795,861   Midwest, Inc.      $  58,990

Jack-In-The-Box Restaurant                          Carl Karcher
  Ft. Worth, TX         12/19/85    $1,005,586   Enterprises, Inc.  $ 135,582

Hops Grill & Bar Restaurant                       Hops of Palm
  Palm Harbor, FL        3/21/86    $1,094,373   Harbor, Inc.       $  76,404

Applebee's Restaurant                                Renaissant
  Harlingen,  TX        12/21/95    $1,393,470   Development  Corp. $ 156,400


        The  property  listed  above  with  a  partial  ownership
percentage  is  owned with an affiliate of the Partnership.   Net
Lease  Income  &  Growth Fund 84-A Limited Partnership  owns  the
remaining  interest  in  the Chi-Chi's restaurant  in  St.  Paul,
Minnesota.

        Each  Partnership owns a separate, undivided interest  in
the  properties.   No  specific agreement  or  commitment  exists
between the Partnerships as to the management of their respective
interests in the properties, and the Partnership that holds  more
than  a  50% interest does not control decisions over  the  other
Partnership's interest.

        The initial Lease terms are for 20 years, except for  the
Palm  Harbor property which is 5 years.  The Leases have  renewal
options  which may extend the Lease term an additional  5  to  20
years.

       Pursuant to the Lease Agreements, the tenants are required
to provide proof of adequate insurance coverage on the properties
they  occupy.   The General Partners believe the  properties  are
adequately covered by insurance and consider the properties to be
well-maintained and sufficient for the Partnership's operations.

         For  tax  purposes,  the  Partnership's  properties  are
depreciated under the either the Accelerated Cost Recovery System
(ACRS)  or the Modified Accelerated Cost Recovery System (MACRS),
depending on the date when it was placed in service.  The largest
depreciable  component  of a property is the  building  which  is
depreciated, using the straight-line method, over either 19 years
(ACRS)  or  31.5  years  or  40  years  (MACRS).   The  remaining
depreciable  components of a property are personal  property  and
land  improvements  which are depreciated, using  an  accelerated
method, over 5 and 15 years, respectively.  Since the Partnership
has  tax-exempt Partners, the Partnership is subject to the rules
of  Section 168(h)(6) of the Internal Revenue Code which requires
a  percentage  of  the properties' depreciable components  to  be
depreciated over longer lives using the straight-line method.  In
general  the  federal  tax  basis  of  the  properties  for   tax
depreciation  purposes  is  the  same  as  the  basis  for   book
depreciation purposes.

ITEM 3.   LEGAL PROCEEDINGS.

          None.

ITEM 4.   SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

          None.


                             PART II
                                
ITEM 5.   MARKET FOR THE REGISTRANT'S PARTNERSHIP UNITS AND
          RELATED SECURITY HOLDER MATTERS.

        As of December 31, 1995, there were 691 holders of record
of the registrant's Limited Partnership Units.  There is no other
class  of  security outstanding or authorized.  The  registrant's
Units  are  not  a traded security in any market.   However,  the
Partnership  may  purchase Units from Limited Partners  who  have
tendered  their  Units to the Partnership.   Such  Units  may  be
acquired  at  a  discount.  The Partnership is not  obligated  to
purchase  in any year more than 5% of the total number  of  Units
originally sold and in no event, obligated to purchase  Units  if
such  purchase  would  impair the capital  or  operation  of  the
Partnership.

        During 1995, five Limited Partners redeemed a total of 18
Partnership  Units for $9,104 in accordance with the  Partnership
Agreement.  In prior years, a total of forty-one Limited Partners
redeemed  375.37 Partnership Units for $293,724.  The redemptions
increase  the remaining Limited Partners' ownership  interest  in
the Partnership.

        Cash distributions of $4,622 and $3,600 were made to  the
General  Partners  and $448,505 and $351,005  were  made  to  the
Limited   Partners   in   1995  and  1994,   respectively.    The
distributions  were made on a quarterly basis and  represent  Net
Cash   Flow,  as  defined,  except  as  discussed  below.   These
distributions  should  not be compared  with  dividends  paid  on
capital stock by corporations.

        As  part  of the Limited Partner distributions  discussed
above,  the  Partnership distributed $160,676  of  proceeds  from
property  sales in 1995.  The distributions reduced  the  Limited
Partners' Adjusted Capital Contributions.

ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.

Results of Operations

       The Partnership's rental income is derived from long-term,
triple net lease agreements on the Partnership's properties.  For
the  years  ended  December 31, 1995 and  1994,  the  Partnership
recognized  rental income of $341,114 and $471,795, respectively.
During the same periods, the Partnership earned investment income
of  $109,453  and $27,903, respectively.  In 1995, rental  income
decreased  mainly as the result of the property  sales  discussed
below.   The  decrease in rental income was partially  offset  by
additional investment income earned on the net proceeds from  the
property sales.


ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        During  the years ended December 31, 1995 and  1994,  the
Partnership   paid   Partnership   administration   expenses   to
affiliated parties of $95,867 and $100,887, respectively.   These
administration  expenses  include  costs  associated   with   the
management of the properties, processing distributions, reporting
requirements  and correspondence to the Limited Partners.  During
the   same   periods,   the  Partnership   incurred   Partnership
administration  and property management expenses  from  unrelated
parties  of  $58,511 and $30,686, respectively.   These  expenses
represent  direct payments to third parties for legal and  filing
fees,  direct administrative costs, outside audit and  accounting
costs,  taxes, insurance and other property costs.  The  increase
in  these  expenses in 1995, when compared to 1994, is due  to  a
$45,000  payment made to the original lessee of the Sierra  Vista
property.  The payment was a reimbursement for a portion  of  the
legal  fees  the  lessee  incurred in  obtaining  a  judgment  of
$390,000  against  the sublessee in favor of the  Partnership  in
1992.   The  reimbursement was contingent upon the  sale  of  the
property  which  was completed in March, 1995.  The  increase  in
expenses  as a result of this payment was partially offset  by  a
decrease  in  property costs as the result of  the  sale  of  the
property early in 1995.

       As of December 31, 1995, the Partnership's annualized cash
distribution  rate  was  5.85%, based  on  the  Adjusted  Capital
Contribution.   Distributions of Net Cash  Flow  to  the  General
Partners were subordinated to the Limited Partners as required in
the Partnership Agreement.  As a result, 99% of distributions and
income  were allocated to Limited Partners and 1% to the  General
Partners.

        Inflation  has  had  a  minimal  effect  on  income  from
operations.   It is expected that increases in sales  volumes  of
the  tenants, due to inflation and real sales growth, will result
in  an  increase  in rental income over the term of  the  leases.
Inflation  also  may  cause  the  Partnership's  real  estate  to
appreciate in value.  However, inflation and changing prices  may
also  have  an  adverse impact on the operating  margins  of  the
properties' tenants which could impair their ability to pay  rent
and subsequently reduce the Partnership's Net Cash Flow available
for distributions.

Liquidity and Capital Resources

        During  1995,  the Partnership's cash balances  decreased
$414,339  mainly  as the result of reinvesting sale  proceeds  in
additional  property as discussed below.  Net  cash  provided  by
operating activities decreased from $376,854 in 1994 to  $296,730
in  1995.   In  1995,  net cash income before depreciation,  when
compared  to  1994,  decreased  by  approximately  $72,000.   The
decrease was due to a reduction in rental income, as a result  of
property   sales,  which  was  partially  offset  by   additional
investment income earned on the net sale proceeds.

        In  1994,  net cash provided by investing activities  was
$1,326,668,  mostly  as the result of the  sale  of  the  Perkins
restaurant.  In 1995, net cash used for investing activities  was
$325,379.   The Partnership received proceeds from  the  sale  of
three properties.  This cash flow was offset by cash invested  in
a new property.

        In February, 1994, the Partnership sold 4,899 square feet
of land from the Perkins property in Bozeman, Montana pursuant to
a  Right of Way Agreement with the State of Montana Department of
Transportation.   The Partnership received net sale  proceeds  of
$36,605  which  resulted in a net gain of $5,641.   The  original
cost of the parcel of land was $30,964.


ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        On September 19, 1994, the Partnership sold the remainder
of the Perkins' property to the lessee.  The Partnership received
net  sale proceeds of $1,227,101 which resulted in a net gain  of
$632,338.   At the time of sale, the cost and related accumulated
depreciation   of  the  property  was  $796,901   and   $202,138,
respectively.   In February, 1995, the Managing  General  Partner
filed  a  proxy statement to propose an Amendment to the  Limited
Partnership  Agreement  that  would  allow  the  Partnership   to
reinvest the net proceeds in additional properties. The Amendment
passed with a majority of Units voting in favor of the Amendment.

        On  March  20,  1995, the Partnership sold  the  Hardee's
restaurant in Sierre Vista, Arizona  to an unrelated third party.
The  Partnership  received net sales proceeds of $296,020,  which
resulted in a net loss of $166,000, which was recognized in 1994.

       On July 19, 1995, the Partnership sold the Fair Muffler in
Ashwaubenon,  Wisconsin to the lessee.  The Partnership  received
net  sale proceeds of $299,874, which resulted in a net  gain  of
$130,181.   At the time of sale, the cost and related accumulated
depreciation   of   the  property  was  $230,134   and   $60,441,
respectively.

        On  August  28, 1995, the Partnership sold  the  Hardee's
restaurant  in  Wayne, Nebraska to the lessee.   The  Partnership
received net sales proceeds of $474,530 which resulted in  a  net
gain  of  $150,989.  At the time of sale, the  cost  and  related
accumulated  depreciation  of  the  property  was  $447,944   and
$124,403, respectively.

        During 1995, the Partnership distributed $162,299 of  the
net sale proceeds to the Limited and General Partners as part  of
their regular quarterly distributions, which represented a return
of  capital of $22.59 per Limited Partnership Unit.  The majority
of  the  remaining  net  proceeds were reinvested  in  additional
properties.

        On  December  21,  1995,  the  Partnership  purchased  an
Applebee's  restaurant in Harlingen, Texas for  $1,393,470.   The
property is leased to Renaissant Development Corporation under  a
Lease Agreement with a primary term of 20 years and annual rental
payments of $156,000.

        On  February 14, 1996, the Partnership purchased an   80%
interest   in  a  Tractor  Supply  Company  store  in  Maryville,
Tennessee.   The purchase price was approximately $850,000.   The
property  is  leased  to  Tractor Supply Company  under  a  Lease
Agreement  with  a  primary term of 14 years  and  annual  rental
payments of $90,300.  The remaining interest in the property  was
purchased  by  AEI  Real Estate Fund XV Limited  Partnership,  an
affiliate of the Partnership.

       The Partnership's primary use of cash flow is distribution
and  redemption  payments to Partners.  The Partnership  declares
its  regular  quarterly  distributions before  the  end  of  each
quarter and pays the distribution in the first week after the end
of  each quarter.  The Partnership attempts to maintain a  stable
distribution  rate from quarter to quarter.  Redemption  payments
are  paid  to  redeeming Partners in the fourth quarter  of  each
year.   In 1995, distributions increased, when compared to  1994,
mainly due to an additional distribution of net sale proceeds  of
approximately $75,000 in December, 1995.

        The  Partnership may purchase Units from Limited Partners
who have tendered their Units to the Partnership.  Such Units may
be  acquired at a discount.  The Partnership is not obligated  to
purchase  in any year more than 5% of the total number  of  Units
originally sold and in no event, obligated to purchase  Units  if
such  purchase  would  impair the capital  or  operation  of  the
Partnership.


ITEM 6.   MANAGEMENT'S DISCUSSION AND ANALYSIS.  (Continued)

        During 1995, five Limited Partners redeemed a total of 18
Partnership  Units for $9,104 in accordance with the  Partnership
Agreement.  The Partnership acquired these Units using  Net  Cash
Flow  from  operations.  In prior years,  a  total  of  forty-one
Limited  Partners redeemed 375.37 Partnership Units for $293,724.
The   redemptions   increase  the  remaining  Limited   Partners'
ownership interest in the Partnership.

      The  continuing rent payments from the properties, together
with  cash generated from the property sales, should be  adequate
to  fund  continuing  distributions and  meet  other  Partnership
obligations on both a short-term and long-term basis.

ITEM 7.   FINANCIAL STATEMENTS.


       See accompanying index to financial statements.


                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  INDEX TO FINANCIAL STATEMENTS



                                                       

Independent Auditor's Report                            

Balance Sheet as of December 31, 1995 and 1994          

Statements for the Years Ended December 31, 1995 and 1994:

     Income                                             

     Cash Flows                                         

     Changes in Partners' Capital                       

Notes to Financial Statements                      

                                
                                
                                
                  INDEPENDENT AUDITOR'S REPORT





To the Partners:
AEI Real Estate Fund 85-A Limited Partnership
St. Paul, Minnesota




      We  have audited the accompanying balance sheet of AEI REAL
ESTATE   FUND  85-A  LIMITED  PARTNERSHIP  (a  Minnesota  limited
partnership)  as  of December 31, 1995 and 1994 and  the  related
statements of income, cash flows and changes in partners' capital
for  the  years then ended.  These financial statements  are  the
responsibility    of   the   Partnership's    management.     Our
responsibility  is  to  express an  opinion  on  these  financial
statements based on our audits.

      We  conducted  our  audits  in  accordance  with  generally
accepted  auditing standards.  Those standards  require  that  we
plan  and perform the audit to obtain reasonable assurance  about
whether   the   financial  statements  are   free   of   material
misstatement.   An  audit includes examining, on  a  test  basis,
evidence  supporting the amounts and disclosures in the financial
statements.   An  audit  also includes assessing  the  accounting
principles used and significant estimates made by management,  as
well  as evaluating the overall financial statement presentation.
We  believe  that our audits provide a reasonable basis  for  our
opinion.

      In  our opinion, the financial statements referred to above
present  fairly, in all material respects, the financial position
of   AEI  Real  Estate  Fund  85-A  Limited  Partnership  as   of
December31, 1995 and 1994, and the results of its operations  and
its  cash  flows  for  the years then ended, in  conformity  with
generally accepted accounting principles.






Minneapolis,  Minnesota        /s/  Boulay, Heutmaker, Zibell & Co. P.L.L.P.
February 6, 1996                Certified Public Accountants




<PAGE>                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                          BALANCE SHEET
                                
                           DECEMBER 31
                                
                             ASSETS
                                
                                                       1995         1994

CURRENT ASSETS:
  Cash                                            $ 1,017,632   $ 1,431,971
  Receivables                                           8,514         6,490
                                                   -----------   -----------
      Total Current Assets                          1,026,146     1,438,461
                                                   -----------   -----------
INVESTMENTS IN REAL ESTATE:
  Land                                              1,723,603     1,668,370
  Buildings and Equipment                           2,565,687     2,319,578
  Property Acquisition Costs                            2,333             0
  Accumulated Depreciation                           (792,710)     (999,232)
                                                   -----------   -----------
      Net Investments in Real Estate                3,498,913     2,988,716
                                                   -----------   -----------
          Total Assets                            $ 4,525,059   $ 4,427,177
                                                   ===========   ===========


                      LIABILITIES AND PARTNERS' CAPITAL

CURRENT LIABILITIES:
  Payable to AEI Fund Management, Inc.            $    26,857   $    24,292
  Distributions Payable                               160,298        83,757
                                                   -----------   -----------
      Total Current Liabilities                       187,155       108,049
                                                   -----------   -----------
PARTNERS' CAPITAL (DEFICIT):
  General Partners                                    (34,720)      (34,908)
  Limited Partners, $1,000 Unit value;
     7,500 Units authorized and issued;
     7,107 and 7,125 outstanding in 1995
     and 1994, respectively                         4,372,624     4,354,036
                                                   -----------   -----------
      Total Partners' Capital                       4,337,904     4,319,128
                                                   -----------   -----------
        Total  Liabilities and Partners' Capital  $ 4,525,059   $ 4,427,177
                                                   ===========   ===========



 The accompanying notes to financial statements are an integral
                     part of this statement.

<PAGE>

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                       STATEMENT OF INCOME
                                
                 FOR THE YEARS ENDED DECEMBER 3l


                                                        1995         1994

INCOME:
  Rent                                             $   341,114   $   471,795
  Investment Income                                    109,453        27,903
                                                    -----------   -----------
      Total Income                                     450,567       499,698
                                                    -----------   -----------

EXPENSES:
  Partnership Administration - Affiliates               95,867       100,887
  Partnership Administration and Property
     Management - Unrelated Parties                     58,511        30,686
  Depreciation                                          96,352       129,461
                                                    -----------   -----------
      Total Expenses                                   250,730       261,034
                                                    -----------   -----------

OPERATING INCOME                                       199,837       238,664

GAIN ON SALE OF REAL ESTATE                            281,170       471,979
                                                    -----------   -----------

NET INCOME                                         $   481,007   $   710,643
                                                    ===========   ===========

NET INCOME ALLOCATED:
  General Partners                                 $     4,810   $     7,106
  Limited Partners                                     476,197       703,537
                                                    -----------   -----------
                                                   $   481,007   $   710,643
                                                    ===========   ===========

NET INCOME PER LIMITED PARTNERSHIP UNIT
(7,120 and 7,132 weighted average Units outstanding
in 1995 and 1994, respectively)                    $     66.88    $     98.65
                                                    ===========    ===========





 The accompanying notes to financial statements are an integral
                     part of this statement.
                                

<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                     STATEMENT OF CASH FLOWS
                                
                 FOR THE YEARS ENDED DECEMBER 31

                                                       1995         1994

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Income                                      $   481,007   $   710,643

  Adjustments To Reconcile Net Income
  To Net Cash Provided By Operating Activities:
     Depreciation                                      96,352       129,461
     Gain on Sale of Real Estate                     (281,170)     (471,979)
     Increase in Receivables                           (2,024)         (575)
     Increase in Payable to
        AEI Fund Management, Inc.                       2,565         9,304
                                                   -----------   -----------
       Total Adjustments                             (184,277)     (333,789)
                                                   -----------   -----------
       Net Cash Provided By
           Operating Activities                       296,730       376,854
                                                   -----------   -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Investments in Real Estate                       (1,395,803)            0
  Proceeds from Sale of Real Estate                 1,070,424     1,263,706
  Collection of Long-Term Note Receivable                   0        62,962
                                                   -----------   -----------
       Net Cash Provided By (Used For)
           Investing Activities                      (325,379)    1,326,668
                                                   -----------   -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Increase (Decrease) in Distributions Payable         76,541       (10,883)
  Distributions to Partners                          (453,035)     (354,550)
  Redemption Payments                                  (9,196)       (5,496)
                                                   -----------   -----------
       Net Cash Used For
           Financing Activities                      (385,690)     (370,929)
                                                   -----------   -----------

NET INCREASE (DECREASE) IN CASH                      (414,339)    1,332,593

CASH, beginning of period                           1,431,971        99,378
                                                   -----------   -----------

CASH, end of period                               $ 1,017,632   $ 1,431,971
                                                   ===========   ===========



 The accompanying notes to financial statements are an integral
                     part of this statement.


<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
            STATEMENT OF CHANGES IN PARTNERS' CAPITAL
                                
                 FOR THE YEARS ENDED DECEMBER 31


                                                                     Limited
                                                                   Partnership
                              General       Limited                   Units
                              Partners      Partners      Total    Outstanding


BALANCE, December 31, 1993  $ (38,414)   $ 4,006,945  $ 3,968,531    7,134.38

  Distributions                (3,545)      (351,005)    (354,550)

  Redemption Payments             (55)        (5,441)      (5,496)      (9.75)

  Net Income                    7,106        703,537      710,643
                             -----------  -----------  -----------  ----------
BALANCE, December 31, 1994    (34,908)     4,354,036    4,319,128    7,124.63

  Distributions                (4,530)      (448,505)    (453,035)

  Redemption Payments             (92)        (9,104)      (9,196)     (18.00)

  Net Income                    4,810        476,197       481,007
                             -----------  -----------   -----------  ----------
BALANCE, December 31, 1995  $ (34,720)   $ 4,372,624   $ 4,337,904    7,106.63
                             ===========  ===========   ===========  ==========




 The accompanying notes to financial statements are an integral
                     part of this statement.


<PAGE>
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1995 AND 1994


(1)  Organization -

     AEI  Real Estate Fund 85-A Limited Partnership (Partnership)
     was  formed  to  acquire and lease commercial properties  to
     operating tenants.  The Partnership's operations are managed
     by  Net  Lease  Management 85-A, Inc.  (NLM),  the  Managing
     General Partner of the Partnership.  Robert P. Johnson,  the
     President  and  sole  shareholder  of  NLM,  serves  as  the
     Individual General Partner of the Partnership. An  affiliate
     of  NLM,  AEI  Fund  Management,  Inc.  (AEI)  performs  the
     administrative and operating functions for the Partnership.
     
     The   terms   of  the  Partnership  offering  call   for   a
     subscription  price of $1,000 per Limited Partnership  Unit,
     payable   on  acceptance  of  the  offer.   The  Partnership
     commenced   operations  on  April  15,  1985  when   minimum
     subscriptions    of   1,300   Limited   Partnership    Units
     ($1,300,000)  were  accepted.   The  Partnership's  offering
     terminated  on  June 20, 1985 when the maximum  subscription
     limit  of  7,500 Limited Partnership Units ($7,500,000)  was
     reached.
     
     Under  the  terms of the Limited Partnership Agreement,  the
     Limited  Partners and General Partners contributed funds  of
     $7,500,000  and $1,000, respectively.  During the  operation
     of the Partnership, any Net Cash Flow, as defined, which the
     General Partners determine to distribute will be distributed
     90% to the Limited Partners and 10% to the General Partners;
     provided,  however, that such distributions to  the  General
     Partners will be subordinated to the Limited Partners  first
     receiving an annual, noncumulative distribution of Net  Cash
     Flow equal to 10% of their Adjusted Capital Contribution, as
     defined,  and, provided further, that in no event  will  the
     General Partners receive less than 1% of such Net Cash  Flow
     per  annum.  Distributions to Limited Partners will be  made
     pro rata by Units.
     
     Any  Net  Proceeds  of Sale, as defined, from  the  sale  or
     financing of the Partnership's properties which the  General
     Partners determine to distribute will, after provisions  for
     debts  and  reserves, be paid in the following  manner:  (i)
     first,  99%  to the Limited Partners and 1% to  the  General
     Partners until the Limited Partners receive an amount  equal
     to:  (a)  their Adjusted Capital Contribution  plus  (b)  an
     amount  equal  to 6% of their Adjusted Capital  Contribution
     per  annum, cumulative but not compounded, to the extent not
     previously distributed from Net Cash Flow; (ii) next, 99% to
     the  Limited  Partners and 1% to the General Partners  until
     the Limited Partners receive an amount equal to 14% of their
     Adjusted Capital Contribution per annum, cumulative but  not
     compounded, to the extent not previously distributed;  (iii)
     next, to the General Partners until cumulative distributions
     to the General Partners under Items (ii) and (iii) equal 15%
     of cumulative distributions to all Partners under Items (ii)
     and (iii).  Any remaining balance will be distributed 85% to
     the  Limited  Partners  and  15% to  the  General  Partners.
     Distributions to the Limited Partners will be made pro  rata
     by Units.

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1995 AND 1994


(1)  Organization - (Continued)
     
     For  tax  purposes,  profits  from  operations,  other  than
     profits  attributable  to  the  sale,  exchange,  financing,
     refinancing   or  other  disposition  of  the  Partnership's
     property,  will  be  allocated first in the  same  ratio  in
     which,  and  to the extent, Net Cash Flow is distributed  to
     the Partners for such year.  Any additional profits will  be
     allocated 90% to the Limited Partners and 10% to the General
     Partners.   In the event no Net Cash Flow is distributed  to
     the  Limited  Partners,  90% of  each  item  of  Partnership
     income,  gain  or credit for each respective year  shall  be
     allocated to the Limited Partners, and 10% of each such item
     shall be allocated to the General Partners.  Net losses from
     operations will be allocated 98% to the Limited Partners and
     2% to the General Partners.
     
     For  tax purposes, profits arising from the sale, financing,
     or  other disposition of the Partnership's property will  be
     allocated  in  accordance with the Partnership Agreement  as
     follows:  (i) first, to those Partners with deficit balances
     in  their capital accounts in an amount equal to the sum  of
     such  deficit  balances; (ii) second,  99%  to  the  Limited
     Partners  and 1% to the General Partners until the aggregate
     balance in the Limited Partners' capital accounts equals the
     sum  of the Limited Partners' Adjusted Capital Contributions
     plus  an  amount  equal  to 14% of  their  Adjusted  Capital
     Contributions  per annum, cumulative but not compounded,  to
     the  extent  not previously allocated; (iii) third,  to  the
     General Partners until cumulative allocations to the General
     Partners equal 15% of cumulative allocations.  Any remaining
     balance  will  be allocated 85% to the Limited Partners  and
     15%  to the General Partners.  Losses will be allocated  98%
     to the Limited Partners and 2% to the General Partners.
     
     The  General Partners are not required to currently  fund  a
     deficit   capital   balance.   Upon   liquidation   of   the
     Partnership or withdrawal by a General Partner, the  General
     Partners will contribute to the Partnership an amount  equal
     to  the  lesser  of  the deficit balances in  their  capital
     accounts  or  1%  of  total Limited  Partners'  and  General
     Partners' capital contributions.
     
(2)  Summary of Significant Accounting Policies -

     Financial Statement Presentation

       The  accounts  of  the Partnership are maintained  on  the
       accrual  basis of accounting for both federal  income  tax
       purposes and financial reporting purposes.
       
     Accounting Estimates
     
       Management  uses  estimates and assumptions  in  preparing
       these  financial statements in accordance  with  generally
       accepted  accounting  principles.   Those  estimates   and
       assumptions may affect the reported amounts of assets  and
       liabilities,  the  disclosure  of  contingent  assets  and
       liabilities,  and  the  reported  revenues  and  expenses.
       Actual results could differ from those estimates.
       

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1995 AND 1994

(2)  Summary of Significant Accounting Policies - (Continued)

       Given that the Partnership has had limited success in  its
       efforts to lease or dispose of certain properties,  it  is
       reasonably  possible that the Partnership's estimate  that
       it  will  recover the carrying amount of these  properties
       from  future operations or sales will change in  the  near
       term.
       
     Cash Concentrations of Credit Risk
     
       At  times  throughout  the year,  the  Partnership's  cash
       deposited  in  financial  institutions  may  exceed   FDIC
       insurance limits.
       
     Income Taxes
     
       The  income or loss of the Partnership for federal  income
       tax  reporting  purposes is includable in the  income  tax
       returns of the partners.  Accordingly, no recognition  has
       been  given to income taxes in the accompanying  financial
       statements.
       
       The  tax  return, the qualification of the Partnership  as
       such  for  tax  purposes, and the amount of  distributable
       Partnership  income or loss are subject to examination  by
       federal   and  state  taxing  authorities.   If  such   an
       examination  results  in  changes  with  respect  to   the
       Partnership  qualification or in changes to  distributable
       Partnership  income  or loss, the taxable  income  of  the
       partners would be adjusted accordingly.

     Real Estate

       The  Partnership's real estate is leased  under  long-term
       triple  net  leases classified as operating  leases.   The
       Partnership  recognizes  rental  revenue  on  the  accrual
       basis  according  to  the terms of the individual  leases.
       For  leases  which contain cost of living  increases,  the
       increases  are  recognized in the year in which  they  are
       effective.
       
       Real  estate is recorded at the lower of cost or estimated
       net  realizable value.  The Financial Accounting Standards
       Board  has issued Statement No. 121, "Accounting  for  the
       Impairment of Long-Lived Assets and for Long-Lived  Assets
       to   be   Disposed   Of"  which  is  effective   for   the
       Partnership's  fiscal year ended December 31,  1996.   The
       Partnership  regularly reviews the carrying value  of  its
       properties  and  will  reduce  properties  to  their   net
       realizable value as needed.  Adoption of Statement 121  is
       not   expected   to  have  a  material   effect   on   the
       Partnership's operations.
       
       The  Partnership  has capitalized as Investments  in  Real
       Estate   certain   costs  incurred  in  the   review   and
       acquisition  of the properties.  The costs were  allocated
       to the land, buildings and equipment.
       
       The   buildings  and  equipment  of  the  Partnership  are
       depreciated  using the straight-line method for  financial
       reporting purposes based on estimated useful lives  of  30
       years and 10 years respectively.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1995 AND 1994

(3)  Related Party Transactions -

     In 1985, the Partnership acquired a 45% interest in the Chi-
     Chi's  Mexican Restaurante property.  The remaining interest
     in  this property is owned by Net Lease Income & Growth Fund
     84-A Limited Partnership, an affiliate of the Partnership.
     
     Each Partnership owns a separate, undivided interest in  the
     property.   No  specific  agreement  or  commitment   exists
     between  the  Partnerships as to  the  management  of  their
     respective  interests in the property, and  the  Partnership
     that  holds  more  than  a  50% interest  does  not  control
     decisions  over  the  other  Partnership's  interest.    The
     financial   statements  reflect  only   this   Partnership's
     percentage  share  of  the  property's  land,  building  and
     equipment, liabilities, revenues and expenses.

     NLM   and  AEI  received  the  following  compensation   and
     reimbursements for costs and expenses from the Partnership:

                                      Total Incurred by the Partnership
                                       for the Years Ended December 3l

                                                   1995         1994

a. AEI and NLM are reimbursed for all costs
   incurred in connection with managing the
   Partnership's operations, maintaining the
   Partnership's books and communicating
   the results of operations to the Limited
   Partners.                                         $  95,867     $  100,887
                                                      ========      =========

b. AEI and NLM are reimbursed for all direct
   expenses they have paid on the Partnership's
   behalf to third parties.  These expenses 
   included printing costs, interest, legal and 
   filing fees, direct administrative costs, 
   outside audit and accounting costs, taxes,        $  58,511     $   30,686
   insurance and other porperty costs.                ========      =========

c. AEI is reimbursed for all property acquisition
   costs incurred by it in acquiring properties on
   behalf of the Partnership.  The amounts are net
   of financing and commitment fees and expense
   reimbursements received by the Partnership from
   the lessees in the amount of $6,750 for 1995.     $   2,333     $        0
                                                      ========      =========


     The  payable  to  AEI Fund Management, Inc.  represents  the
     balance due for the services described in 3a, b and c.  This
     balance is non-interest bearing and unsecured and is  to  be
     paid in the normal course of business.


          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP
                                
                  NOTES TO FINANCIAL STATEMENTS
                                
                   DECEMBER 31, 1995 AND 1994

(4)  Investments in Real Estate -

     The  Partnership  leases its properties to  various  tenants
     through  noncancelable triple net leases,  which  have  been
     classified  as operating leases.  Under a triple net  lease,
     the  lessee  is  responsible  for  all  real  estate  taxes,
     insurance,  maintenance, repairs and operating  expenses  of
     the  property.   The initial Lease terms are for  20  years,
     except  for the Palm Harbor property which is 5 years.   The
     Leases have renewal options which may extend the Lease  term
     an  additional  5  to 20 years.  The Leases contain  clauses
     which entitle the Partnership to receive additional rent  in
     future  years, based on stated rent increases  or  if  gross
     receipts  for the property exceed certain specified amounts,
     among other conditions.
     
     The  Partnership's  properties are all  commercial,  single-
     tenant buildings.  The Chi-Chi's was constructed in 1984 and
     acquired  in  1985.  The Jack-In-The-Box was  completed  and
     acquired  in  1985.  The Palm Harbor property was  completed
     and  acquired  in 1986.  The Applebee's in Harlingen,  Texas
     was  completed  and acquired in 1995.  There  have  been  no
     costs   capitalized  as  improvements  subsequent   to   the
     acquisitions.

     The  cost  of  the  properties and the  related  accumulated
     depreciation at December 31, 1995 are as follows:
 
                                       Buildings and             Accumulated
Property                      Land       Equipment     Total     Depreciation

Chi-Chi's, St. Paul, MN  $   289,776  $   506,085  $   795,861  $   263,979
Jack-In-The-Box,
  Fort Worth, TX             498,862      506,724    1,005,586      240,548
Hops Grill and Bar,
  Palm Harbor, FL            484,570      609,803    1,094,373      286,612
Applebee's, Harlingen, TX    450,395      943,075    1,393,470        1,571
                          -----------  -----------  -----------  -----------
                         $ 1,723,603  $ 2,565,687  $ 4,289,290  $   792,710
                          ===========  ===========  ===========  ===========

     In February, 1994, the Partnership sold 4,899 square feet of
     land  from the Perkins property in Bozeman, Montana pursuant
     to  a  Right  of  Way Agreement with the  State  of  Montana
     Department of Transportation.  The Partnership received  net
     sale  proceeds of $36,605 which resulted in a  net  gain  of
     $5,641.   The  original  cost of  the  parcel  of  land  was
     $30,964.
     
     On September 19, 1994, the Partnership sold the remainder of
     the  Perkins'  property  to  the  lessee.   The  Partnership
     received net sale proceeds of $1,227,101 which resulted in a
     net  gain  of $632,338.  At the time of sale, the  cost  and
     related   accumulated  depreciation  of  the  property   was
     $796,901 and $202,138, respectively.  In February, 1995, the
     Managing General Partner filed a proxy statement to  propose
     an Amendment to the Limited Partnership Agreement that would
     allow  the  Partnership  to reinvest  the  net  proceeds  in
     additional properties.  The Amendment passed with a majority
     of Units voting in favor of the Amendment.
     
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(4)  Investments in Real Estate - (Continued)

     On   March 20,  1995,  the  Partnership  sold  the   Hardee's
     restaurant  in  Sierra Vista, Arizona to an unrelated  third
     party.   The  Partnership received  net  sales  proceeds  of
     $296,020,  which  resulted in a net loss of $166,000,  which
     was recognized in 1994.
     
     On  July 19, 1995, the Partnership sold the Fair Muffler  in
     Ashwaubenon,  Wisconsin  to  the  lessee.   The  Partnership
     received net sale proceeds of $299,874, which resulted in  a
     net  gain  of $130,181.  At the time of sale, the  cost  and
     related   accumulated  depreciation  of  the  property   was
     $230,134 and $60,441, respectively.
     
     On  August  28,  1995,  the Partnership  sold  the  Hardee's
     restaurant   in   Wayne,  Nebraska  to  the   lessee.    The
     Partnership  received net sales proceeds of  $474,530  which
     resulted  in a net gain of $150,989.  At the time  of  sale,
     the   cost  and  related  accumulated  depreciation  of  the
     property was $447,944 and $124,403, respectively.
     
     During 1995, the Partnership distributed $162,299 of the net
     sale proceeds to the Limited and General Partners as part of
     their  regular quarterly distributions, which represented  a
     return  of  capital of $22.59 per Limited Partnership  Unit.
     The  majority of the remaining net proceeds were  reinvested
     in additional properties.
     
     On   December   21,  1995,  the  Partnership  purchased   an
     Applebee's  restaurant in Harlingen, Texas  for  $1,393,470.
     The property is leased to Renaissant Development Corporation
     under a Lease Agreement with a primary term of 20 years  and
     annual rental payments of $156,400.
     
     On  February  14,  1996, the Partnership  purchased  an  80%
     interest  in  a  Tractor Supply Company store in  Maryville,
     Tennessee.   The purchase price was approximately  $850,000.
     The  property  is leased to Tractor Supply Company  under  a
     Lease  Agreement with a primary term of 14 years and  annual
     rental  payments of $90,300.  The remaining interest in  the
     property  was purchased by AEI Real Estate Fund  XV  Limited
     Partnership,   an   affiliate  of   the   Partnership.   The
     Partnership has incurred net costs of $2,333 related to  the
     acquisition   of   the  property.   The  costs   have   been
     capitalized  and  will be allocated to  land,  building  and
     equipment.
     
     The  minimum future rentals on the non-cancelable Leases for
     years subsequent to December 31, 1995 are as follows:

                       1996          $   370,930
                       1997              318,722
                       1998              291,982
                       1999              304,494
                       2000              304,494
                       Thereafter      3,809,280
                                      ----------
                                     $ 5,399,902
                                      ==========

     In  1995  and  1994,  the Partnership recognized  contingent
     rents of $66,971 and $95,974, respectively.

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(5)  Major Tenants -

     The following schedule presents rent revenue from individual
     tenants,   or  affiliated  groups  of  tenants,   who   each
     contributed more than ten percent of the Partnership's total
     rent revenue for the years ended December 31:
     
                                                 1995         1994
      Tenants                   Industry

     Carl Karcher
        Enterprises, Inc.       Restaurant       $ 135,582    $ 136,024
     Gallatin Cakes, Inc.       Restaurant             N/A       98,834
     Hops of Palm Harbor, Inc.  Restaurant          75,192       71,612
     Harwayne, Inc.             Restaurant          42,212       64,093
     Chi-Chi's Midwest, Inc.    Restaurant          58,990       62,781
                                                  ---------    ---------

     Aggregate rent revenue of major tenants     $ 311,976    $ 433,344
                                                  =========    =========

     Aggregate rent revenue of major tenants as
     a percentage of total rent revenue                91%          92%
                                                  =========    =========

(6)  Partners' Capital-

     Cash  distributions of $4,622 and $3,600 were  made  to  the
     General Partners and $448,505 and $351,005 were made to  the
     Limited  Partners  in  1995  and  1994,  respectively.   The
     Limited Partners' distributions represent $62.99 and  $49.22
     per  Limited  Partnership Unit outstanding using  7,120  and
     7,132 weighted average Units in 1995 and 1994, respectively.
     The  distributions represent $62.99 and $49.22 per  Unit  of
     Net Income in 1995 and 1994, respectively.
     
     As  part  of  the  Limited  Partner distributions  discussed
     above, the Partnership distributed $160,676 of proceeds from
     property  sales  in  1995.   The distributions  reduced  the
     Limited Partners' Adjusted Capital Contributions.
     
     Distributions  of  Net  Cash Flow to  the  General  Partners
     during  1995  and  1994  were subordinated  to  the  Limited
     Partners  as  required in the Partnership Agreement.   As  a
     result,  99%  of distributions and income were allocated  to
     the Limited Partners and 1% to the General Partners.
     
     The  Partnership may acquire Units from Limited Partners who
     have  tendered their Units to the Partnership.   Such  Units
     may  be  acquired  at  a discount.  The Partnership  is  not
     obligated to purchase in any year more than 5% of the  total
     number  of  Units originally sold and in no event, obligated
     to  purchase Units if such purchase would impair the capital
     or operation of the Partnership.
     

          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(6)  Partners' Capital- (Continued)

     During  1995, five Limited Partners redeemed a total  of  18
     Partnership  Units  for  $9,104  in  accordance   with   the
     Partnership Agreement.  The Partnership acquired these Units
     using  Net Cash Flow from operations.  In 1994, four Limited
     Partners  redeemed  a  total of 9.75 Partnership  Units  for
     $5,441.   The  redemptions increase  the  remaining  Limited
     Partners' ownership interest in the Partnership.
     
     After  the  effect of redemptions and the return of  capital
     from   the   sale   of   property,  the   Adjusted   Capital
     Contribution,  as defined in the Partnership  Agreement,  is
     $903.10 per original $1,000 invested.
     
(7)  Income Taxes -

     The   following  is  a  reconciliation  of  net  income  for
     financial reporting purposes to income reported for  federal
     income tax purposes for the years ended December 31:
     
                                                  1995           1994
     
     Net Income For Financial
      Reporting Purposes                        $ 481,007      $ 710,643
     
     Depreciation for Tax Purposes
      Under Depreciation For Financial
      Reporting Purposes                           15,396         20,037
     
     Net Gain on Sale of Real Estate for Tax
      Purposes Over (Under) Gain for Financial
      Reporting Purposes                          (77,556)       222,685
                                                 ---------      ---------
           Taxable Income to Partners           $ 418,847      $ 953,365
                                                 =========      =========
     
                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(7)  Income Taxes - (Continued)
     
     The  following is a reconciliation of Partners' capital  for
     financial  reporting purposes to Partners' capital  reported
     for   federal  income  tax  purposes  for  the  years  ended
     December 31:
     
                                                   1995          1994
     
     Partners' Capital For
      Financial Reporting Purposes            $ 4,337,904    $ 4,319,128
     
     Depreciation For Tax Purposes Over
      Depreciation For Financial
      Reporting Purposes                         (358,621)      (374,017)
     
     Capitalized Start-Up Costs
      Under Section 195                           363,592        363,592
     
     Amortization of Start-Up and
      Organization Costs                         (389,641)      (389,641)
     
     Property Expenses for Tax Purposes
      Under Expenses for Financial
      Reporting Purposes                            7,999          7,999
     
     Net Gain on Sale of Real Estate for Tax
      Purposes Over Gain for Financial
      Reporting Purposes                          225,910        303,466
     
     Organization and Syndication Costs
      Treated as Reduction of Capital
      For Financial Reporting Purposes          1,004,427      1,004,427
                                               -----------    -----------
           Partners' Capital For
              Tax Reporting Purposes          $ 5,191,570    $ 5,234,954
                                               ===========    ===========

                                
          AEI REAL ESTATE FUND 85-A LIMITED PARTNERSHIP

                  NOTES TO FINANCIAL STATEMENTS

                   DECEMBER 31, 1995 AND 1994

(8)  Fair Value of Financial Instruments -

     The estimated fair values of the financial instruments, none
     of  which  are held for trading purposes, are as follows  at
     December 31, 1995:
     
                                                      1995
                                             Carrying       Fair
                                              Amount        Value
     
     Cash                                  $1,017,632    $1,017,632
     
     The carrying value of cash approximates fair value.
     


ITEM 8.CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
       ACCOUNTING AND FINANCIAL DISCLOSURE.

       None.

                                
                            PART III
                                
ITEM 9.DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL
       PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE
       ACT.

        The  registrant  is  a  limited partnership  and  has  no
officers,  directors, or direct employees.  The General  Partners
of  the  registrant are Robert P. Johnson and NLM.   The  General
Partners  manage and control the Partnership's affairs  and  have
general  responsibility and the ultimate authority in all matters
affecting the Partnership's business.  The director and  officers
of NLM are as follows:

        Robert  P.  Johnson, age 51, is Chief Executive  Officer,
President  and  Director and has held these positions  since  the
formation  of  NLM  in November, 1984, and has  been  elected  to
continue in these positions until March, 1997.  From 1970 to  the
present,  he  has  been employed exclusively  in  the  investment
industry,  specializing  in  tax-advantaged  limited  partnership
investments.   In  that  capacity, he has been  involved  in  the
development,  analysis, marketing and management  of  public  and
private investment programs investing in net lease properties  as
well  as  public  and  private investment programs  investing  in
energy  development.   Since  1971,  Mr.  Johnson  has  been  the
president,  a  director  and  a  registered  principal   of   AEI
Incorporated,  which  is  registered  with  the  Securities   and
Exchange Commission as a securities broker-dealer, is a member of
the  National Association of Securities Dealers, Inc. (NASD)  and
is  a  member  of  the Security Investors Protection  Corporation
(SIPC).   Mr.  Johnson has been president,  a  director  and  the
principal shareholder of AEI Fund Management, Inc., a real estate
management  company founded by him, since 1978.  Mr.  Johnson  is
currently  a general partner or principal of the general  partner
in fifteen other limited partnerships.

        Mark  E.  Larson,  age 43, is Executive  Vice  President,
Treasurer  and  Chief Financial Officer and has been  elected  to
continue  in these positions until March, 1997.  Mr.  Larson  has
been  Treasurer and Executive Vice President since December, 1987
and  Chief  Financial Officer since January, 1990.   In  January,
1993,  Mr.  Larson was elected to serve as Secretary of  NLM  and
will  continue to serve until March, 1997.  Mr. Larson  has  been
employed  by  AEI  Fund Management, Inc. and affiliated  entities
since  1985.   From  1979  to 1985, Mr. Larson  was  with  Apache
Corporation as manager of Program Accounting responsible for  the
accounting  and reports for approximately 45 public partnerships.
Mr.   Larson   is  responsible  for  supervising  the  accounting
functions of NLM and the registrant.

ITEM 10.    EXECUTIVE COMPENSATION.

        The General Partner and affiliates are reimbursed at cost
for  all  services performed on behalf of the registrant and  for
all  third party expenses paid on behalf of the registrant.   The
cost for services performed on behalf of the registrant is actual
time  spent  performing such services plus  an  overhead  burden.
These  services include organizing the registrant  and  arranging
for  the  offer  and  sale  of Units,  reviewing  properties  for
acquisition and rendering administrative and management services.


ITEM 11.    SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
            MANAGEMENT.

        NLM, the Managing General Partner of the registrant,  and
Robert  P.  Johnson, its Individual General Partner,  contributed
$1,000 in total for their interest in the registrant.  See Item 1
for  a discussion of their share of the registrant's profits  and
losses.  During 1990, NLM purchased fourteen and one-half Limited
Partnership  Units  (less than 1% of the Units outstanding)  from
certain Limited Partners.

ITEM 12.    CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

        The  registrant,  NLM  and  its  affiliates  have  common
management and utilize the same facilities.  As a result, certain
administrative  expenses  are  allocated  among   these   related
entities.   All  of  such activities and any  other  transactions
involving the affiliates of the General Partner of the registrant
are  governed  by,  and  are conducted in  conformity  with,  the
limitations set forth in the Limited Partnership Agreement of the
registrant.   Reference is made to Note 3  on  Page  19,  and  is
incorporated  herein by reference, for details of  Related  Party
Transactions.


                             PART IV

ITEM 13.    EXHIBITS AND REPORTS ON FORM 8-K AND 8-K/A.

             A.   Exhibits -
                                      Description

                     27   Financial Data Schedule
                          for year ended December 31, 1995.

             B.   Reports on Form 8-K and 8-K/A - None.


                           SIGNATURES

       Pursuant to the requirements of Section 13 or 15(d) 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.

                             AEI REAL ESTATE FUND 85-A
                             Limited Partnership
                              By:  Net Lease Management  85-A, Inc.
                                   Its Managing General Partner


March 21, 1996                By: /s/ Robert P. Johnson
                                   Robert P. Johnson, President and Director
                                   (Principal Executive Officer)


        Pursuant  to the requirements of the Securities  Exchange
Act  of  1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and  on
the dates indicated.

 Name                                   Title                         Date


/s/ Robert P. Johnson  President (Principal Executive Officer)  March 21, 1996
Robert P. Johnson      and Sole Director of Managing General
                       Partner

/s/ Mark E. Larson     Executive Vice President, Treasurer      March 21, 1996
Mark E. Larson         and Chief Financial Officer