<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
              June 30, 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 - June 30, 1997 and 
            December 31, 1996                                       3
          
            Statements of Income for the Quarters and Six Months
            Ended June 30, 1997 and 1996                            4
          
            Statement of Cash Flows for the Six Months
            Ended June 30, 1997 and 1996                            5
          
            Notes to Financial Statements                         6-8
          
          Management's Discussion and Analysis of 
            Financial Condition and Results of Operations        9-11
          
          
          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
       
                                                     June 30,    December 31,
                                                       1997          1996    
       Assets                                       (Unaudited)  
       Investment property:                                      
         Cost                                      $ 3,251,447   $  4,303,190
         Less accumulated depreciation               3,184,775      4,179,302
           Investment property, net                     66,672        123,888
       Cash and cash equivalents                       444,311        639,226
       Rents and other receivables                       5,964          3,374
       Prepaid insurance                                 2,249          3,258
                                                                 
            Total assets                           $   519,196   $    769,746
                                                    ==========    ===========
                                                                 
                                                                 
       Liabilities and Partners' Equity                          
       Liabilities:                                              
         Due to affiliates                               4,257   $      8,865
         Accounts payable                                  332              -
         Unearned rental revenue                        11,030              -
                                                                 
             Total liabilities                          15,619          8,865
                                                                 
       Partners' Equity (Deficit):                               
         General Partner:                                        
           Capital contribution                          1,000          1,000
           Cumulative net income                       600,045        219,002
           Cumulative cash distributions            (1,300,308)    (1,278,722)
                                                      (699,263)    (1,058,720)
         Limited Partners (62,840 units):                        
           Capital contributions, net of                         
             offering costs                         27,738,501     27,738,501
           Cumulative net income                     5,672,575      5,786,616
           Cumulative cash distributions           (32,208,236)   (31,705,516)
                                                     1,202,840      1,819,601
             Total partners' equity                    503,577        760,881
             Total liabilities and partners'                     
               equity                              $   519,196   $    769,746
                                                    ==========    ===========
                                                                 
                                                                 
                  See accompanying notes to financial statements.
<PAGE>
                     PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
     
                               Statements of Income
                                   (Unaudited)
                         For the Quarters and Six Months
                           Ended June 30, 1997 and 1996
     
                               Six Months Ended          Quarters Ended
                                    June 30                 June 30       
                              1997         1996         1997        1996  
     Revenue:
       Rental income       $  214,645  $  492,702    $  84,787   $ 207,798
       Interest income         10,497      35,759        4,285      23,851
       Net gain on                                              
        sale of equipment     155,900     235,780      108,400    (225,300)
          Total revenue       381,042     764,241      197,472       6,349
                                                                
     Expenses:                                                  
       Depreciation            57,216     148,557       28,608      43,545
       General and                                              
         administrative        56,824      65,183       25,863      29,300
          Total expenses      114,040     213,740       54,471      72,845
                                                                
                                                                
     Net income (loss)     $  267,002  $  550,501    $ 143,001   $ (66,496)
                            =========   =========     ========    ========
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                 See accompanying notes to financial statements.
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                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
     
                             Statement of Cash Flows
                 For the Six Months Ended June 30, 1997 and 1996
                                                                
                                                      1997          1996   
     Cash flows from operating activities:                      
       Net income                                 $   267,002   $   550,501 
                                                                
       Adjustments to reconcile net income                      
         to net cash provided by                                
         (used in) operating activities:                        
           Depreciation and amortization               57,216       148,557
           Net (gain) on sale of                                
             investment property                     (155,900)     (235,780)
                                                                
       Changes in assets and liabilities:                       
         Due to Pershing Lease Partnership II               -         3,669
         Receivables                                   (2,590)        5,056 
         Prepaid insurance                              1,009           887 
         Due to affiliates                             (4,608)       (7,856)
         Accounts payable                                 332         2,945 
         Unearned rental revenue                       11,030        13,997
       Net cash provided by operating                           
         activities                                   173,491       481,976 
                                                                
     Cash flows from investing activities:                      
       Disposition of investment property             155,900     1,579,580 
                                                                
     Cash flows from financing activities:                      
       Cash distributions to Partners                (524,306)   (1,023,706)
                                                                
     Net increase (decrease) in cash and                        
       cash equivalents                              (194,915)    1,037,850
                                                                
     Cash and cash equivalents at beginning                     
         of period                                    639,226       802,866
                                                                
     Cash and cash equivalents at end of                        
         period                                   $   444,311   $ 1,840,716
                                                   ==========    ==========   
                                                                
                                                                
                                                                
                                         
                 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.   Special allocations of taxable income
     may  be required to reduce or eliminate the deficit account balances of 
     Partners   according  to  Treasury  Regulations  and  the   partnership
     agreement.  "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  June  30,  1997 and December 31,  1996,  the Partnership  owned
     investment  property,  with a depreciable cost basis of $3,251,447  and
     $4,303,190, respectively.   The depreciable cost basis at June 30, 1997
     and  December  31,  1996,  includes  acquisition fees of  $147,301  and
     $192,202,  respectively,  which  were  paid  to  the  General  Partner. 
     $1,336,893  and $3,483,851 of the investment property at June 30,  1997
     and December 31,  1996,  respectively,   was subject to existing leases
     and  the  remainder  was  being held in  inventory.   In  August  1997,
     $1,877,204 of equipment, on a depreciable cost basis, was sold.   About
     $1,294,209 of the equipment sold was subject to leases.
     
         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 June 30,  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. 
     
     
     (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 June 30, 1997 follow:
     
         Management fees                                   $ 4,239
         Reimbursable operating expenses                    10,854
     
                                                           $15,093
                                                            ======
     
          The  following costs were due to (from) affiliates  as of June 30,
     1997: 
     
         Management fees                                   $ 1,435
         Reimbursable operating expenses                     2,822
     
                                                           $ 4,257
                                                            ======
     
     
<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  $84,787,  a  decrease  of
     $123,011  from the second quarter 1996.   The decrease is due to  lease
     expirations  and  the sale of equipment.   The amount of  equipment  on
     lease  at  June 30,  1997 on an original cost basis was  $1.3  million.   
     The  original  cost  basis of equipment in inventory is  $1.9  million. 
     During the remainder of 1997,  leases on $592 thousand of equipment are
     scheduled  to expire.   Net gain from sales of investment property  for
     the  second quarter of 1997 was $108 thousand. 
     
          Depreciation   declined  about  $15,000  from  last  year  because
     accelerated  depreciation methods have been used to depreciate much  of
     the equipment and equipment has been sold.   General and administrative
     expenses  for  the  quarter  were down $3,437 compared  to  the  second
     quarter of 1996 due primarily to lower management fees.
     
     The  Partnership believes it is more likely than not that the remaining
     equipment  will  be sold rather than leased.   When the last  piece  of
     equipment is sold,  Partnership operations will cease and the remaining
     cash  will  be distributed.   Although it is not known when  this  will
     occur, it is possible it may occur in 1997.
     
         
     Liquidity and Capital Resources
     
          Management believes operations will generate adequate cash flow to
     fund operations and provide distributions to the partners.
     
     
     
     
     <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 June 30,  1997 as defined by
     Section 17 of the Amended Agreement of Limited Partnership:
                                         
      
         Rental income                                   $   84,787
         Interest income                                      4,285
         Cash from sales                                    108,400
           Total cash inflow                                197,472
                                                         
           Operating expenses                               (21,624)
           Cash from operations and sales                   175,848
                                                         
         Reserve for distributions and operations            88,416
         Partnership management fee                          (4,239)
                                                         
           Distributable cash from operations and sales  $  260,025
                                                          =========
                                                         
      
         Allocations of Distributable Cash from Operations and Sales:
      
                               Operations       Sales        Total  
         Limited Partners      $  144,044    $  107,316   $  251,360
         General Partner            7,581         1,084        8,665
      
           Total               $  151,625    $  108,400   $  260,025
                                =========     =========    =========
      
         
         On May 30,  1997, the Partnership made a $251,360 cash distribution
     to the Limited Partners of record on March 31, 1997.
                                         
                                         
                                         
                                         
                                         
                                         
                                         
<PAGE>
                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
                                         
                                Equipment Summary
    
     
     Lessee                                               
     Federal Paper Board Company, Inc.                                 
     Stone Container Corporation                                        
                                                                     
     
                                                  Acquisition
     Equipment Description                           Cost    
     Heavy Duty Equipment                       $  2,788,507
     Material Handling Equipment                      71,848
     Trucks                                          391,092
     
                                                $  3,251,447
                                                 ===========
     
<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:   August 25, 1996               
     
     
                              By: /s/ Robert L. Hechler              
                                  Robert L. Hechler, as President and
                                  Treasurer of the General Partner
                                  (Principal Accounting and Financial
                                  Officer)
                         
                              Date:  August 25, 1996