To  set  forth  the  transactions  of  a  fund  of  this  kind,  a  state-
ment of  operations  should  be  prepared  showing,  first,  revenues
applicable  to  the  fund;  and,  second,  transfers  from  other  funds,
arriving  at  a  total  of  the  accretions  of  the  fund.  Then  should
follow  a  detail  list  of  the  transfers  or  distributions  from  the
fund  to  the  other  funds,  arriving  at  the  total  of  such  trans-
fers, which,  deducted  from  the  total  accretions,  produces  the
excess  of  accretions  over  transfers,  applicable  as  an  increasing
element  to  the  surplus.
Working  Capital  Funds.  As  stated  in  Chapter  II,  working
capital  funds  comprise  those  funds  which  are  established  to
carry  on  manufacturing,  industrial  or  construction  operations
by  setting  aside  an  amount  to  be  used  as  working  capital,  such
amount  to  be  spent  for  the  purposes  of  the  work,  but  to  be  re-
stored by  proceeds  of  sales  or  assessments.
In  funds  of  this  kind  there  are  two  increasing  elements,  ( I )
revenues  from  proceeds  of  the  sales  of  product  or  from  the
rendition  of  services,  and  (2)  transfers  from  other  funds  in
compensation  for  product  or  services.  The  first  increasing
element  is  derived  from  selling  product  or  doing  work  for
private  persons,  corporations,  or  for  other  government  agen-
cies. The  second  is  derived  from  doing  work  or  from  selling
product  to  other  government  departments,  bureaus,  offices,  or
institutions  within  the  same  jurisdiction.
