For Merging duplicates of Any Object ,You have to create the Duplicate Rule First For that object other wise you will get a message of activating the Duplicate Rule as shown:-
    
    
For creating Duplicate Rule:
-->Click on Setup
-->Search Duplicate Rule in Quick Find Box.
-->Click New and choose your object.
-->Label the rule .
-->Define a Matching Rule.
-->Click save and Activate the Rule.

    
1. From the Accounts tab -> View Duplicates

    
2.Choose the Records of account,You may choose upto 3 Account Records.
3.Click Next.
4.You may compare these duplicate Account Records and click Next.
5.Click On Merge Account Button.
1. From the Contact tab -> View Duplicates

4.You may compare these duplicate Contact Records and click Next.
5.Click On Merge Contact Button.