(1) The object to be observed is illuminated and placed in front of the objective lens, slightly beyond the focal length of the objective lens. Its real, inverted and enlarged image is formed by the objective lens on the other side.
(2) This intermediate image lies within the focal length of the eyepiece. It serves as an object for the eyepiece. The eyepiece works as a simple microscope. The final image is virtual, highly enlarged and inverted with respect to the original object. It can be formed at the minimum distance of distinct vision from the eyepiece. The final image is observed by keeping the eye close to the eyepiece.