<PAGE>
                         SECURITIES AND EXCHANGE COMMISSION
                              Washington, D.C. 20549
          
          
          
                                    FORM 10-Q
          
          
                    Quarterly Report Under Section 13 or 15(d)
                      of The Securities Exchange Act of 1934
          
          
          
          For the Quarter ended             Commission File Number
              March 31, 1997                       33-19038
          
          
          
                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
              (Exact name of registrant as specified in its charter)
          
          
          
                                     MISSOURI
          (State or other jurisdiction of incorporation or organization)
          
          
          
                                    43-1463913
                       (I.R.S. Employer Identification No.)
          
          
          
             6300 Lamar, Shawnee Mission, Kansas 66202 (913) 236-2000
        (Address, including zip code, and telephone number, including area
                code, of registrant's principal executive offices)
          
          
     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 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   
     
     
     
     
     
     
     
     
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                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
          
                                Table of Contents
          
          
          Part I - Financial Information
     
          Financial Statements:                                   Page
          
            Balance Sheet - March 31, 1997 and 
            December 31, 1996                                       3
          
            Statements of Operations for the Quarters 
            Ended March 31, 1997 and 1996                           4
          
            Statement of Cash Flows for the Quarters
            Ended March 31, 1997 and 1996                           5
          
            Notes to Financial Statements                         6-8
          
          Management's Discussion and Analysis of 
            Financial Condition and Results of Operations        9-10
          
          Equipment Summary                                        11
          
          PART II - OTHER INFORMATION
          
          Item 1.  Legal Proceedings.                              12
          
          Item 2.  Changes in Securities.                          12
          
          Item 3.  Default Upon Senior Securities.                 12
          
          Item 4.  Submission of Matters to a Vote of Security 
                   Holders.                                        12
          
          Item 5.  Other Information.                              12
          
          Item 6.  Exhibits and Reports on Form 8-K.
                   (a) Exhibits                                    12
                   (b) Reports on Form 8-K                         12
          
          
          
          
          
          
     
     
       <PAGE>
                     Pershing Lease Income Limited Partnership
                          (A Missouri Limited Partnership)
       
                                   Balance Sheets
       
                                                    March 31,    December 31,
                                                      1997            1996   
       Assets                                      (Unaudited)   
       Investment property:                                      
         Cost                                     $ 4,148,511    $  4,303,190
         Less accumulated depreciation              4,053,231       4,179,302
           Investment property, net                    95,280         123,888
       Cash and cash equivalents                      565,072         639,226
       Rents and other receivables                      5,443           3,374
       Prepaid insurance                                2,896           3,258
                                                                 
            Total assets                          $   668,691    $    769,746
                                                   ==========     ===========
                                                                 
                                                                 
       Liabilities and Partners' Equity                          
       Liabilities:                                              
         Due to affiliates                              9,425    $      8,865
         Unearned rental revenue                       36,100               -
                                                                 
             Total liabilities                         45,525           8,865
                                                                 
       Partners' Equity (Deficit):                               
         General Partner:                                        
           Capital contribution                         1,000           1,000
           Cumulative net income                      219,638         219,002
           Cumulative cash distributions           (1,289,079)     (1,278,722)
                                                   (1,068,441)     (1,058,720)
         Limited Partners (62,840 units):                        
           Capital contributions, net of                         
             offering costs                        27,738,501      27,738,501
           Cumulative net income                    5,909,982       5,786,616
           Cumulative cash distributions          (31,956,876)    (31,705,516)
                                                    1,691,607       1,819,601
             Total partners' equity                   623,166         760,881
             Total liabilities and partners'                     
               equity                             $   668,691    $    769,746
                                                   ==========     ===========
                                                                 
                                                                 
                  See accompanying notes to financial statements.
       <PAGE>
                      PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
                                         
                             Statements of Operations
                                   (Unaudited)
                  For the Quarters Ended March 31, 1997 and 1996
     
     
                                                    1997         1996   
     Revenue:                                                 
       Rental income                             $  129,858   $  284,903
       Interest income                                6,212       11,909
       Net gain on sale of investment property       47,500      461,080
          Total revenue                             183,570      757,892
                                                              
     Expenses:                                                
       Depreciation                                  28,609      105,012
       General and administrative                    30,960       35,884
          Total expenses                             59,569      140,896
                                                              
     Net income                                  $  124,001   $  616,996
                                                  =========    =========
     
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                 See accompanying notes to financial statements.
       <PAGE>
                     PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
                                         
                             Statement of Cash Flows
                                   (Unaudited)
                  For the Quarters Ended March 31, 1997 and 1996
                                                                
                                                      1997          1996   
                                                                
     Cash flows from operating activities:                      
       Net income                                 $   124,001   $   616,996
       Adjustments to reconcile net income                      
         to net cash provided by                                
         operating activities:                                  
           Depreciation                                28,609       105,013
           Net gain on sale of investment                       
             property                                 (47,500)     (461,080)
                                                                
       Changes in assets and liabilities:                       
         Receivables                                   (2,069)        8,467
         Prepaid insurance                                362           525
         Due to affiliates                                560        (7,105)
         Accounts payable                                   -        18,304
         Unearned rental revenue                       36,100        19,993
         Deferred sales revenue                             -        (5,821)
           Net cash provided by operating                       
             activities                               140,063       295,292
                                                                
     Cash flows from investing activities:                      
       Disposition of investment property              47,500       461,080
                                                                
     Cash flows from financing activities:                      
       Cash distributions to Partners                (261,717)     (513,941)
                                                                
     Net increase (decrease) in cash and                        
       cash equivalents                               (74,154)      242,431
                                                                
     Cash and cash equivalents at beginning                     
         of period                                    639,226       802,866
                                                                
     Cash and cash equivalents at end of                        
         period                                   $   565,072   $ 1,045,297
                                                   ==========    ==========
                                                                
                                         
                                                                
                 See accompanying notes to financial statements.
       <PAGE>
                     PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
          
                          Notes to Financial Statements
                                   (Unaudited)
          
          In the opinion of the General Partner,  the accompanying unaudited
     financial  statements  contain  all adjustments  necessary  to  present
     fairly the financial position, results of operations and cash flows.
          
     (1) Summary of Significant Accounting Policies
          
          Organization
          
          Pershing  Lease Income Limited Partnership (the "Partnership") was
     organized under the Missouri Revised Uniform Limited Partnership Act on 
     November  30,  1987.  The Partnership was formed to invest primarily in
     equipment  to  be leased to third parties.   The Amended  Agreement  of
     Limited  Partnership  authorized the issuance of up to  60,000  Limited
     Partnership  units  at  a  price  of $500 per unit  and  up  to  20,000
     additional units.   The Partnership had an initial closing and thirteen
     subsequent  closings.   The closings occurred on May 3,  1988,  June 3,
     1988, July 8, 1988, August 5, 1988, September 8, 1988, October 7, 1988,
     November 7,  1988, December 7, 1988, January 9, 1989, February 7, 1989,
     March 7,  1989,  April 7,  1989, May 5,  1989,  and June 14,  1989 with
     10,732,  6,712, 3,984, 4,268, 5,011, 3,822, 2,562, 2,701, 4,001, 3,256,
     3,604, 4,014, 3,592, and 4,581 units, respectively.
     
          Pursuant  to  the  terms  of  the  Amended  Agreement  of  Limited   
     Partnership, distributable cash from operations and profits for federal
     income  tax  purposes from normal operations,  as defined,  are  to  be
     allocated  95%  to the Limited Partners and 5% to the  General  Partner
     until  payout has occurred,  and 85% to the Limited Partners and 15% to
     the  General  Partner thereafter.   Any distributable cash  from  sales
     shall  be distributed 99% to the Limited Partners and 1% to the General
     Partner until payout has occurred,  and 85% to the Limited Partners and
     15% to the General Partner thereafter. "Payout" means the time when the
     aggregate  amount  of  all  distributions to the  Limited  Partners  of
     distributable cash from operations and of distributable cash from sales
     or  refinancing  equals the aggregate amount of the  Limited  Partners'
     original  invested capital plus a cumulative 8% annual return on  their
     aggregate unreturned invested capital (calculated from the beginning of
     the   first  full  fiscal  quarter  following  each  Limited  Partner's
     admission to the Partnership).   Losses for federal income tax purposes
     from  the normal operations of the Partnership will be allocated 99% to
     the Limited Partners and 1% to the General Partner.
          
          The  General Partner,  Waddell & Reed Leasing,  Inc.,  contributed
     $1,000  for its General Partnership interest.   The General Partner  is
     not  required  to  make any other capital  contributions  except  under
     certain limited circumstances upon termination of the Partnership.
       <PAGE>
                     Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                      Notes to Financial Statements, Continued
                                   (Unaudited)
     
     
         Basis of Presentation
     
         The  Partnership financial statements are presented on the  accrual
     basis of accounting.
     
         Cash and Cash Equivalents
     
         Cash  and  cash equivalents in the accompanying statements of  cash
     flows  include  cash on hand and short-term investments  with  original
     maturities of less than ninety days.
     
         Investment Property
     
         At  March 31,  1997 and December 31,  1996,  the Partnership  owned
     investment  property,  with a depreciable cost basis of $4,148,511  and
     $4,303,190, respectively.  The depreciable cost basis at March 31, 1997
     and  December  31,  1996,  includes  acquisition fees of  $188,115  and
     $192,202,  respectively,  which  were  paid  to  the  General  Partner. 
     $2,682,513 and $3,483,851 of the investment property at March 31,  1997
     and December 31,  1996,  respectively,   was subject to existing leases
     and the remainder was being held in inventory.
     
         Depreciation  on investment property is provided using  accelerated
     methods over lives ranging from 3 to 12 years.  
     
         Income Taxes
     
         The Partnership is a pass-through entity and, accordingly, taxes on
     income,  if  any,  are  the responsibility of the individual  partners.
     Partners'  equity at March 31, 1997 as reported herein has been reduced
     by  sales commissions and other costs of the offering which will not be
     deductible  by the partners until the Partnership is liquidated or  the
     partners' units are otherwise disposed of.
     
     
       <PAGE>
                     Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                     Notes to Financial Statements, Continued
                                   (Unaudited)
     
     
     (2) Leases
     
          The  Partnership leases the investment property to unrelated third
     parties under operating leases.  Rental income is reported when earned. 
     Minimum  lease  payments scheduled to be received in the  future  under
     existing noncancelable operating leases follow:
     
                    1997           $ 110,519
                    1998              15,390
                    1999                   -
                                   $ 125,909
                                    ========
     
     
     (3) Related Party Transactions
     
          Fees,  commissions  and  other  expenses paid or  payable  by  the    
     Partnership to the General Partner or affiliates of the General Partner
     for the quarter ending March 31, 1997 follow:
     
         Management fees                                   $  6,493
         Reimbursable operating expenses                     10,851
     
                                                           $ 17,344
                                                            =======
     
          The  following costs were due to (from) affiliates as of March 31,
     1997: 
     
         Management fees                                   $  3,114
         Reimbursable operating expenses                      6,311
     
                                                           $  9,425
                                                            =======
     
       <PAGE>
                     Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
     
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                          CONDITION AND  RESULTS OF OPERATIONS.
     
     
     Partnership Operations
     
          Rental  income for the  quarter  was $129,858,  $155,045 less than
     the  first quarter of 1996.   The decrease is due to  lease expirations
     and  the sale of equipment.   The amount of equipment on lease at March
     31,  1997  on an original cost basis was $2.7 million.     The original
     cost  basis  of  equipment in inventory is $1.4  million.   During  the
     remainder  of 1997,  leases on $2 million of equipment are scheduled to
     expire.   Because  a significant amount of equipment will be off  lease
     during  1997,  it is possible that the Partnership may sell all of  its
     equipment and cease operations during the year.
     
          Net  gain from sales of investment property for the first  quarter
     of 1997 was $47,500, a decrease of $413,580 from last year due to fewer
     equipment sales. 
     
          Depreciation  was $28,609 for the period,  down about $76,403 from
     last  year  because accelerated depreciation methods have been used  to
     depreciate  much of the equipment and the sale of  equipment.   General
     and  administrative  expenses for the quarter were $30,960 down  $4,924
     compared to the first quarter of 1996 due primarily to lower management
     fees.
     
         
     Liquidity and Capital Resources
     
          Management believes operations will generate adequate cash flow to
     fund  operations  and  provide  distributions  to  the  partners.    As
     discussed  above,  it is possible that the Partnership may sell all  of
     its equipment and cease operations during 1997.
     
     
     
     
     
       <PAGE>
                     Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND  RESULTS OF OPERATIONS.
     
     
     Cash and Distributable Cash from Operations and Sales
         Shown  below is the calculation of Cash and Distributable Cash from
     Operations and Sales for the quarter ended March 31, 1997 as defined by
     Section 17 of the Amended Agreement of Limited Partnership:
                                         
      
         Rental income                                   $ 129,858
         Interest income                                     6,212
         Cash from sales                                    47,500
           Total cash inflow                               183,570
                                                         
           Operating expenses                              (24,467)
           Cash from operations and sales                  159,103
                                                         
         Reserve for distributions and operations          109,979
         Partnership management fee                         (6,493)
                                                         
           Distributable cash from operations and sales  $ 262,589
                                                          ========
                                                         
      
         Allocations of Distributable Cash from Operations and Sales:
      
                               Operations      Sales         Total 
         Limited Partners      $  204,335    $ 47,025      $251,360
         General Partner           10,754         475        11,229
      
           Total               $  215,089    $ 47,500      $262,589
                                =========     =======       =======
      
         
         On  February  28,  1997,  the  Partnership  made  a  $251,360  cash
     distribution to the Limited Partners of record on December 31, 1996.
                                         
                                         
                                         
                                         
                                         
                                         
                                         
       <PAGE>
                     Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
                                         
                                Equipment Summary
    
     
     Lessee                                               
     Federal Paper Board Company, Inc.                                 
     Stone Container Corporation                                        
     Toledo Board of Education
     USX Corporation                                                 
                                                                     
     
                                                  Acquisition
     Equipment Description                           Cost    
     Heavy Duty Equipment                       $  3,427,361
     Computer Equipment                              136,151
     Material Handling Equipment                      71,848
     Medical Equipment                               122,059
     Trucks                                          391,092
     
                                                $  4,148,511
                                                 ===========
     
       <PAGE>
                     Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
     
     PART II - OTHER INFORMATION
     
     Item 1.  Legal Proceedings.
     
              Not applicable.
     
     Item 2.  Changes in Securities.
     
              Not applicable.
     
     Item 3.  Default Upon Senior Securities.
     
     
     Item 4.  Submission of Matters to a Vote of Security Holders.
     
              Not applicable.
     
     Item 5.  Other Information.
     
              Not applicable.
     
     Item 6.  Exhibits and Reports on Form 8-K.
     
              (a) Exhibits  - There are no exhibits.
                                       
              (b) Form   8-K   -   There   have  been  no  reports  on  Form  
                  8-K.
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
       <PAGE>
                      Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
     
                                    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.
     
     
                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                                   (Registrant)
     
     
     
                              By: /s/ Michael D. Strohm            
                                  Michael D. Strohm, Executive Vice
                                  President and Assistant Treasurer
                                  of the General Partner
                                                                            
                              Date:   May 27, 1997                    
     
     
                              By: /s/ Robert L. Hechler             
                                  Robert L. Hechler, as President,
                                  and Treasurer of the General Partner
                                  (Principal Accounting and Financial
                                  Officer)
     
                              Date:   May 27, 1997