Interest on overdraft.

Sir, 

In our university we have overdraft a/c no  PNB 1283. we overdraft Rs 400000. i.e PNB 1283 is 400000 Dr (debit Balance)

since from bank is charging monthly interest on overdraft on our PNB 1240 a/c balance is Rs 450000 Dr.   i .e Rs 50000 is interest charge by bank on overdraft.

i made the entry like this Dr: interest on overdraf-50000

                                             Cr: PNB 1240 -50000.

But i want to know . (1) Interest on overdraf Rs 50000 is treated as   expenses or liabilities.

                                    (2) whether is   50000 should be shown on cashflow statement or not.  (though we have not paid the amount but bank charge the interest and they increase overdraft  a/c 400000 to 450000.

Please help to know. i shall be very    obliged to you.

Thank you in advance.