Hi,
I have a 96 accord @120K miles on it. I dont have much knowledge as to
how the internals of an automobile work. I have recently got this car and have noticed that the there is a strong jerk when shifting the gears. The
RPM goes to 3K and when the AT changes the gear the RPM comes to 2K and returns back.

On searching a bit on the google it seems that i might be having transmission problems. Some people suggest to get the AT fluid changed,
whereas some people complain of the issue getting worse after changing
the ATF. Others have gone ahead and changed thier AT. Since i wont
be able to spend much as of now. Can anyone please tell me what exactly
the problem would be. Will a ATF change solve the problem? Or is this problem got to do with AT itself and nothing else, since ppl. who have
rebuilt their AT have complained that the issue still remains.

 

I would change the ATF if it was my car. Use the Honda ATF from the dealership. Search for posts from JimBlake about the procedure to change the fluid.

Does the D4 light start flashing when driving? Have you had the car scanned for codes? Most parts stores will scan for free.

 

X2 with changing the fluid and using Honda Z1...I would add that you might want to check the throttle control cable after or while changing the fluid...assuming there are no codes. And then also check the mounts.