Ferrous sulphate crystals contain water molecules (FeSO4. 7H2O). On heating, ferrous sulphate crystals lose water and anhydrous ferrous sulphate (FeSO4) is formed. So their colour changes from light green to white.
On further heating, anhydrous ferrous sulphate decomposes to form ferric oxide (Fe2O3), sulphur dioxide (SO2) and sulphur trioxide (SO3). So, the gas emitted smells like burning sulphur.