Ch: 02: SOFP & SOPL

For the Sole Trader’s SOFP, under Capital, the capital should be: Capital invested + Profits – Drawings. The resulting figure will be used in the following year’s SOFP.

Question 01: The profit is the Gross Profit or Net profit? Do we need to minus expense when adding profit here?

Question 02; Do we add “other income” as well to the profit?