I Was of the Opinion that Bank OD Forms a part of Cash and Cash equivalents in the Cash Flow Statement,(CFS)just wanted to know how a Bank OD Sanctioned during the year should be shown in the CFS,IF it should be treated as a financing activity or not............????
Bank Overdraft is normally provided for operating actvities. It should be a part of operating activities.
Also, it is not consideredf as cash and cash equivalent, rather it is shown under current liabilities under bank OD accounts.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
View Details
CAclubindia
