In 2nd Gear

Hydraulic pressure is applied to the 2nd clutch, then the 2nd clutch engages the secondary shaft 2nd gear with the secondary shaft.
The mainshaft idler gear drives the secondary shaft via the idler shaft idler gear and the secondary shaft idler gear.
The secondary shaft 2nd gear drives the countershaft 2nd gear and the countershaft.
Power is transmitted to the final drive gear, which in turn drives the final driven gear, and the transfer drive gear (4WD).
4WD: The transfer drive gear drives the transfer drive gear (hypoid gear) and the transfer output shaft (hypoid gear).

NOTE: The illustration shows the 4WD transmission; the 2WD transmission does not have the transfer mechanism.

Fig 1: Power Flow Diagram - In 2nd Gear

Courtesy of AMERICAN HONDA MOTOR CO., INC.