National income can be computed in income approach by adding all factor of incomein production process.
Factor incomes in production process.

 Factor incomes can be classified under five categories.

• Income of employment
• Real income
• Net interest
• Profit and entrepreneur’s income
• Self employment and professional income.

Employed income is based on three factors

• Salaries and wages
• Employers’ payments for social security contributions.
• Insurance services, health facilities, labour compensations and disaster payments to
  employees.

Rent income is based on the following

• Rent income earned from fixed property and rent from internal resources which are
  given on lease or rent.
• Rent from houses and implicit rent
• Income on intellectual property

Only net interest of the business sector is included in National income estimates

Profit and entrepreneurs’ income are based on the following sources.

• Corporate income taxes
• Dividends given to owners.
• Undivided profits

Self employed and professional income include the following.

• Sole enterprises which are not registered as companies.
• Partnerships and cooperatives .
• Farmers’
• Various professionals employed in other jobs
• Professionals (Doctors, Lawyers)
• Private incomes

Household income can be calculated as follows

Disposable personal income occurs when direct taxes are deducted from personal income.
The following schedule illustrates how foreign accounts are related to National accounts.

National income can be computed in two ways