[Eiman.kuwait]

The general fund of a local government lends $100,000 to an internal service fund that provides transportation services. In the government-wide statement of financial position, this internal transaction is
A. An elimination.
B. A financing source and use.
C. An interfund service provided and used.
D. An interfund transfer.
Answer (A) is correct.
In the government-wide statement of financial position, internal service funds generally are reported in the governmental activities column. Governmental activities also are reported in the governmental funds (e.g., the general fund).
When the activities of governmental funds and internal service funds are both governmental, the effects of transactions between them must be eliminated. Accordingly, the interfund receivable (general fund) and payable (internal service fund) are eliminated in the preparation of the statement of net position.

why are they eliminated? since them from a different fund group, they should be both presented, general fund is governmental and internal service fund is proprietary fund. can anyone clarify it for me ?