What is the treatment of bank overdraft and cash credit in cashflow statement?

Dear Student,

Both bank overdraft and cash credit are treated as 'short term borrowings' and shown under financing activities.
 
Increase in bank overdraft/cash credit: Cash inflow (financing activity, borrowings)
Decrease in bank overdraft/cash credit: Cash outflow (financing activity, repayment)

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bank overdraft is a financing activity 
if it is having a positive balance then it will be added to financing 
if it is having a negative  balance then it will be added to the financing 
 
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