Simple steps to create Google Adsense Account:

1. Open https://www.google.com/adsense
2. click "Sign up now"
3. Provide the information
4. click submit

Once you create your account it will be approved by Google within two to three working days. You will receive a mail saying that your account is aproved.

Steps to setup the ads:

1. login to your account
2. click Adsense setup
3. click AdSense for Content
4. You can select text ads or image ads or both
5. Select any ad formate which will suite for you website
6. Select ad colors such a way that it should be similer to web colors
7. You can create channels to track the performance of this ad unit
8. click submit and get code
9. copy paste obtained code to your website.

Adsense Tips:

1. After creating Adsense account read AdSense Program Policies and Terms and Conditions properly.
2. Don’t click on your own ads, or ask people to click, even if you are using proxies. Google has enough techniques to track you!
3. Don't use any script to click your ads.
4. Don’t encourage your visitors to click on ads. You cannot say "Best recorces" and display Google ads. The only acceptable text is “Sponsored Links” and “Advertisements”.
5. Display ads in proper places.
6. Customize your ads such a way that it should look like website content.