Broadly, clubbing involves putting two accounts, or more, together in a major account for a more structured reporting. For example, on the statement of financial position, the liabilities and equity accounts are clubbed together in order to produce a summarized picture of the balance sheet. These accounts, on the liability and equity side, these accounts or items include accounts payable, notes payable, unearned revenue, capital stock, retained earnings. The total of liabilities account is figured out along with the sum of equity account and the gross figure is reached at. This figure (total liabilities and equity) is matched with the total of total assets, to ensure that the two sides of the balance sheet are equal.

Another example is when allowance for doubtful accounts is clubbed with accounts receivable on balance sheet for a concise presentation of accounts.