Circle Line, accordingly, goes around city (4)
I believe the answer is:
oslo
'city' is the definition.
(Oslo is an example)
'circle line accordingly goes around' is the wordplay.
'circle' becomes 'o'.
'line' becomes 'l'.
'accordingly' becomes 'so' ('so' can be a synonym of 'accordingly').
'goes around' is an insertion indicator.
'l' placed inside 'so' is 'slo'.
'o'+'slo'='OSLO'
(Other definitions for oslo that I've seen before include "Capital city, called Kristiania until 1924" , "Location" , "Scandinavian port" , "Capital in throes of go-slow" , "Norwegian capital" .)