Below is the step by step mode on how to do it
1.Generate Parsed code for adsense code because we cannot put adsense code directly in the xml.So parse it using AdParser.
2.After parsing,your ad code Should look like this.

How To Place ad above or below your post header
log in to your dashboard--> layout- -> Edit HTML
Click on "Expand Widget Template" and scroll down to where you see this:-
To place ad below your post header.Paste the code below this line.
How To Place ad end of your post body
log in to your dashboard--> layout- -> Edit HTML
Click on "Expand Widget Template" and scroll down to where you see this:-
Paste the code below this line, to show your ad at the end of your post.
NOTE : To Set the Align of your ad , Insert your code like this.
center
"> Your Ad codeReplace "center" with "left" or "right" for desired alignment.
Save the template



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