<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, 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   
     
     
     
     
     
     
     
     
     <PAGE>
                    PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
          
                                Table of Contents
          
          
          Part I - Financial Information
     
          Financial Statements:                                   Page
          
            Balance Sheet - September 30, 1997 and 
            December 31, 1996                                       3
          
            Statements of Income for the Quarters and Nine Months
            Ended September 30, 1997 and 1996                       4
          
            Statement of Cash Flows for the Nine Months
            Ended September 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
          
          
          
          
          
          
     
     
     
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                     Pershing Lease Income Limited Partnership
                          (A Missouri Limited Partnership)
       
                                   Balance Sheets
       
                                                  September 30,  December 31,
                                                      1997          1996     
       Assets                                      (Unaudited)   
       Investment property:                                      
         Cost                                     $ 1,106,889    $  4,303,190
         Less accumulated depreciation              1,068,825       4,179,302
           Investment property, net                    38,064         123,888
       Cash and cash equivalents                      625,241         639,226
       Rents and other receivables                      7,557           3,374
       Prepaid insurance                                1,622           3,258
                                                                 
            Total assets                          $   672,484    $    769,746
                                                   ==========     ===========
                                                                 
                                                                 
       Liabilities and Partners' Equity                          
       Liabilities:                                              
         Due to affiliates                              3,998    $      8,865
         Accounts payable                                  26               -
         Unearned rental revenue                          686               -
                                                                 
             Total liabilities                          4,710           8,865
                                                                 
       Partners' Equity (Deficit):                               
         General Partner:                                        
           Capital contribution                         1,000           1,000
           Cumulative net income                    1,065,596         219,002
           Cumulative cash distributions           (1,308,972)     (1,278,722)
                                                     (242,376)     (1,058,720)
         Limited Partners (62,840 units):                        
           Capital contributions, net of                         
             offering costs                        27,738,501      27,738,501
           Cumulative net income                    5,631,245       5,786,616
           Cumulative cash distributions          (32,459,596)    (31,705,516)
                                                      910,150       1,819,601
             Total partners' equity                   667,774         760,881
             Total liabilities and partners'                     
               equity                             $   672,484    $    769,746
                                                   ==========     ===========
                                                                 
                                                                 
                  See accompanying notes to financial statements.

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                     PERSHING LEASE INCOME LIMITED PARTNERSHIP
                         (A Missouri Limited Partnership)
     
                               Statements of Income
                                   (Unaudited)
                         For the Quarters and Nine Months
                         Ended September 30, 1997 and 1996
     
                               Nine Months Ended          Quarters Ended
                                 September 30              September 30    
                              1997         1996         1997        1996   
     Revenue:
       Rental income       $  227,381  $  678,363    $   12,736  $  185,661
       Interest income         16,313      56,674         5,816      20,915
       Net gain on                                              
        sale of equipment     602,900     473,602       447,000     237,822
          Total revenue       846,594   1,208,639       465,552     444,398
                                                                
     Expenses:                                                  
       Depreciation            85,824     215,378        28,608      66,821
       General and                                              
         administrative        69,547     101,449        12,723      36,266
          Total expenses      155,371     316,827        41,331     103,087
                                                                
                                                                
     Net income            $  691,223  $  891,812    $  424,221  $  341,311
                            =========   =========     =========   =========
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                                                                
                 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 Nine Months Ended September 30, 1997 and 1996
                                                                
                                                      1997          1996   
     Cash flows from operating activities:                      
       Net income                                 $   691,223   $   891,812 
                                                                
       Adjustments to reconcile net income                      
         to net cash provided by                                
         (used in) operating activities:                        
           Depreciation and amortization               85,824       215,378
           Net (gain) on sale of                                
             investment property                     (602,900)     (473,602)
                                                                
       Changes in assets and liabilities:                       
         Due from Pershing Lease Income II                  -       (25,102)
         Receivables                                   (4,183)        9,019 
         Prepaid insurance                              1,636        (1,751)
         Due to affiliates                             (4,867)       (5,241)
         Accounts payable                                  26       (43,440)
         Unearned rental revenue                          686        27,033
       Net cash provided by operating                           
         activities                                   167,444       594,106 
                                                                
     Cash flows from investing activities:                      
       Disposition of investment property             602,900     1,915,683 
                                                                
     Cash flows from financing activities:                      
       Cash distributions to Partners                (784,330)   (2,299,559)
                                                                
     Net increase (decrease) in cash and                        
       cash equivalents                               (13,986)      210,230
                                                                
     Cash and cash equivalents at beginning                     
         of period                                    639,226       802,866
                                                                
     Cash and cash equivalents at end of                        
         period                                   $   625,240   $ 1,013,096
                                                   ==========    ==========
                                                                
                                                                
                                                                
                                         
                 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.
     
     
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                    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,  1997 and December 31, 1996, the Partnership owned
     investment  property,  with a depreciable cost basis of $1,106,889  and
     $4,303,190, respectively.   The depreciable cost basis at September 30,
     1997  and December 31,  1996,  includes acquisition fees of $50,193 and
     $195,129, respectively, which were paid to the General Partner.  
     
         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,  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 September 30, 1997 follow:
     
         Management fees                                   $    638
         Reimbursable operating expenses                      6,583
     
                                                           $  7,221
                                                            =======
     
          The  following costs were due to (from) affiliates as of September
     30, 1997: 
     
         Management fees                                   $   (691)
         Reimbursable operating expenses                      4,689
     
                                                           $  3,998
                                                            =======
     
     
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                    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  $12,736,  a  decrease  of
     $172,925  from the third quarter 1996.   The decrease is due to   lease
     expirations  and  the  sale of equipment.  The original cost  basis  of
     equipment  in inventory is $1,106,889.   In October 1997,  $305,552  of
     equipment was sold.
     
          Net  gain from sales of investment property for the third  quarter
     of 1997 was $447,000, an increase of $209,178 from last year. 
     
          Depreciation  for  the third quarter declined about  $38,213  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 $12,723,  down $23,543
     from the third quarter of 1996.
     
          As  of September 30,  1997,  there were no leases in effect.   The
     Partnership  has a mining equipment remaining that is being remarketed. 
     The  Partnership  believes  that it is more likely than  not  that  the
     remaining equipment will be sold rather than leased and the Partnership
     liquidated.   Although  the  Partnership does not know when  this  will
     occur, it is possible it may occur during 1997. 
     
         
     Liquidity and Capital Resources
     
          At September 30, 1997 the Partnership had sufficient cash  to pay
     operating expenses.   As discussed above,  the last piece of equipment
     is  being marketed.   When it is sold,  the Partnership plans to cease
     operations  and  make  its  final cash  distribution  to  the  limited
     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,  1997  as
     defined by Section 17 of the Amended Agreement of Limited Partnership:
                                         
      
         Rental income                                   $  12,736
         Interest income                                     5,816
         Cash from sales                                   447,000
           Total cash inflow                               465,552
                                                         
           Operating expenses                               12,085
           Cash from operations and sales                  453,467
                                                         
         Reserve for distributions and operations           57,529
         Partnership management fee                           (638)
                                                         
           Distributable cash from operations and sales  $ 510,358
                                                          ========
                                                         
      
         Allocations of Distributable Cash from Operations and Sales:
      
                               Operations      Sales         Total 
         Limited Partners      $   60,190    $442,530      $502,720
         General Partner            3,168       4,470         7,638
      
           Total               $   63,358    $447,000      $510,358
                                =========     =======       =======
      
         
         On  August  29,   1997,   the  Partnership  made  a  $251,360  cash
     distribution to the Limited Partners of record on June 30, 1997.
                                         
                                         
                                         
                                         
                                         
                                         
                                         
<PAGE>
                    Pershing Lease Income Limited Partnership
                         (A Missouri Limited Partnership)
                                         
                                Equipment Summary
    
     
     Lessee                                               
     
                                                Acquisition
     Equipment Description                          Cost   
     Heavy Duty Equipment                       $1,035,040
     Material Handling Equipment                    71,849
     
                                                $1,106,889
                                                 =========
     
<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:   November 24, 1997               
     
     
                              By: /s/ Robert L. Hechler              
                                  Robert L. Hechler, as President and
                                  Treasurer of the General Partner
                                  (Principal Accounting and Financial
                                  Officer)
                         
                              Date:  November 24, 1997