<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
           September 30, 1996                      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   
     
     
     
     
     
     
     
     
     <PAGE>
                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
          
                                Table of Contents
          
          
          Part I - Financial Information
     
          Financial Statements:                                   Page
          
            Balance Sheet - September 30, 1996 and 
            December 31, 1995                                       3
          
            Statements of Income for the Quarters and Nine Months
            Ended September 30, 1996 and 1995                       4
          
            Statement of Cash Flows for the Nine Months
            Ended September 30, 1996 and 1995                       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
       
                                                  September 30,  December 31,
                                                      1996          1995     
       Assets                                      (Unaudited)   
       Investment property:                                      
         Cost                                     $ 4,303,190    $ 10,782,881
         Less accumulated depreciation              4,150,673       8,972,905
           Investment property, net                   152,517       1,809,976
       Cash and cash equivalents                    1,013,096         802,866
       Rents and other receivables                      7,534          16,553
       Due from Pershing Lease Income                            
         Limited Partnership II                        25,102               -
       Prepaid insurance                                3,621           1,870
                                                                 
            Total assets                          $ 1,201,870    $  2,631,265
                                                   ==========     ===========
                                                                 
                                                                 
       Liabilities and Partners' Equity                          
       Liabilities:                                              
         Due to affiliates                             12,495    $     17,736
         Accounts payable                              52,758          96,198
         Unearned rental revenue                       32,854           5,821
                                                                 
             Total liabilities                         98,107         119,755
                                                                 
       Partners' Equity (Deficit):                               
         General Partner:                                        
           Capital contribution                         1,000           1,000
           Cumulative net income                      213,952         188,305
           Cumulative cash distributions           (1,267,243)     (1,229,924)
                                                   (1,052,291)     (1,040,619)
         Limited Partners (62,840 units):                        
           Capital contributions, net of                         
             offering costs                        27,738,501      27,738,501
           Cumulative net income                    5,636,059       4,769,894
           Cumulative cash distributions          (31,218,506)    (28,956,266)
                                                    2,156,054       3,552,129
             Total partners' equity                 1,103,763       2,511,510
             Total liabilities and partners'                     
               equity                             $ 1,201,870    $  2,631,265
                                                   ==========     ===========
                                                                 
                                                                 
                  See accompanying notes to financial statements.
                                          
       <PAGE>
                     PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
     
                               Statements of Income
                                   (Unaudited)
                         For the Quarters and Nine Months
                         Ended September 30, 1996 and 1995
     
                               Nine Months Ended          Quarters Ended
                                 September 30              September 30    
                              1996         1995         1996        1995   
     Revenue:
       Rental income       $  678,363  $1,481,614    $  185,661  $  467,964
       Interest income         56,674      38,191        20,915      10,011
       Net gain on                                              
        sale of equipment     473,602     364,863       237,822     111,451
          Total revenue     1,208,639   1,884,668       444,398     589,426
                                                                
     Expenses:                                                  
       Depreciation           215,378     660,446        66,821     244,868
       General and                                              
         administrative       101,449     251,235        36,266      37,977
          Total expenses      316,827     911,681       103,087     282,845
                                                                
                                                                
     Net income            $  891,812  $  972,987    $  341,311  $  306,581
                            =========   =========     =========   =========
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                 See accompanying notes to financial statements.
                                         
                                         
       <PAGE>
                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
     
                             Statement of Cash Flows
              For the Nine Months Ended September 30, 1996 and 1995
                                                                
                                                      1996          1995   
     Cash flows from operating activities:                      
       Net income                                 $   891,812   $   972,987 
                                                                
       Adjustments to reconcile net income                      
         to net cash provided by                                
         (used in) operating activities:                        
           Depreciation and amortization              215,378       660,446
           Net (gain) on sale of                                
             investment property                     (473,602)     (364,863)
                                                                
       Changes in assets and liabilities:                       
         Due from Pershing Lease Income II            (25,102)       (4,031)
         Receivables                                    9,019        45,753 
         Prepaid insurance                             (1,751)         (503)
         Due to affiliates                             (5,241)       (6,640)
         Accounts payable                             (43,440)       60,571 
         Deferred sales revenue                             -       (19,814)
         Unearned rental revenue                       27,033        (8,495)
       Net cash provided by operating                           
         activities                                   594,106     1,335,411 
                                                                
     Cash flows from investing activities:                      
       Disposition of investment property           1,915,683       420,686 
                                                                
     Cash flows from financing activities:                      
       Cash distributions to Partners              (2,299,559)   (1,962,847)
                                                                
     Net increase (decrease) in cash and                        
       cash equivalents                               210,230      (206,750)
                                                                
     Cash and cash equivalents at beginning                     
         of period                                    802,866       926,557
                                                                
     Cash and cash equivalents at end of                        
         period                                   $ 1,013,096   $   719,807
                                                   ==========    ==========
                                                                
                                                                
                                                                
                                         
                 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.   "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 September 30,  1996 and December 31, 1995, the Partnership owned
     investment  property,  with a depreciable cost basis of $4,303,190  and
     $10,782,881,  respectively.    The  depreciable cost basis at September
     30,  1996 and December 31, 1995,  includes acquisition fees of $195,129
     and  $488,958,  respectively,  which were paid to the General  Partner. 
     $3,529,189  and $9,006,855 of the investment property at September  30,
     1996  and December 31,  1995,  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  September 30,  1996 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:
     
                    1996           $  71,774
                    1997             144,218
                    1998              15,724
                    1999                   -
                                   $ 231,716
                                    ========
     
     
     (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 September 30, 1996 follow:
     
         Management fees                                   $  8,490
         Reimbursable operating expenses                     14,478
     
                                                           $ 22,968
                                                            =======
     
          The  following costs were due to (from) affiliates as of September
     30, 1996: 
     
         Management fees                                   $  4,205
         Reimbursable operating expenses                      8,290
         Due from Pershing Lease Income
             Limited Partnership II                          25,102
     
                                                           $ 37,597
                                                            =======
     
       <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  $185,661,  a  decrease  of
     $282,303  from the third quarter 1995.   The decrease is due to   lease
     expirations  and  the sale of equipment.   The amount of  equipment  on
     lease at September 30,  1996 on an original cost basis was $3.5 million
     and the original cost basis of equipment in inventory is $774 thousand. 
     During  the  remainder of 1996,  leases on $2 million of equipment  are
     scheduled to expire.
     
          Net  gain from sales of investment property for the third  quarter
     of 1996 was $237,822, an increase of $126,371 from last year. 
     
          Depreciation  for  the third quarter declined about $178,047  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 $36,266,  about  the
     same as the third quarter of 1995.
     
         
     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  September  30,  1996  as
     defined by Section 17 of the Amended Agreement of Limited Partnership:
                                         
      
         Rental income                                   $ 185,661
         Interest income                                    20,915
         Cash from sales                                   336,103
           Total cash inflow                               542,679
                                                         
           Operating expenses                               27,736
           Cash from operations and sales                  514,943
                                                         
         Reserve for distributions and operations           (7,963)
         Partnership management fee                         (8,490)
                                                         
           Distributable cash from operations and sales  $ 498,490
                                                          ========
                                                         
      
         Allocations of Distributable Cash from Operations and Sales:
      
                               Operations      Sales         Total 
         Limited Partners      $  154,268    $332,742      $487,010
         General Partner            8,119       3,361        11,480
      
           Total               $  162,387    $336,103      $498,490
                                =========     =======       =======
      
         
         On  August  29,  1996,  the  Partnership  made  a  $1,256,800  cash
     distribution to the Limited Partners of record on June 30, 1996.
                                         
       <PAGE>
                                         
                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
                                         
                                Equipment Summary
    
     
     Lessee                                               
     BASF Corporation                                                 
     Eveleth Taconite Company                                        
     Federal Paper Board Company, Inc.                                 
     Stone Container Corporation                                        
     Toledo Board of Education
     USX Corporation                                                 
                                                                     
     
                                                  Acquisition
     Equipment Description                           Cost    
     Heavy Duty Equipment                       $  3,582,039
     Computer Equipment                              136,151
     Material Handling Equipment                      71,849
     Medical Equipment                               122,059
     Trucks                                          391,092
     
                                                $  4,303,190
                                                 ===========
     
       <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 - An 8-K was filed on July 29,  1996,  indicating
              under Item 6 that there had been a Resignation of Registrant's
              Directors.   On July 12, 1996, Robert L. Hechler was appointed
              President  and Director of Waddell & Reed Leasing,  Inc.,  the
              General  Partner of Pershing Lease Income Limited  Partnership
              due to the retirement of George L.  Wirkkula, former President
              and  Director.   No  financial statement were filed with  this
              report.
     
     
       <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:   November 26, 1996               
     
     
                              By: /s/ Robert L. Hechler              
                                  Robert L. Hechler, as President and
                                  Treasurer of the General Partner
                                  (Principal Accounting and Financial
                                  Officer)
                         
                              Date:  November 26, 1996