accounting entries

The Sale May Be Recoreded on Basis of Indian Currency 

& While receiving Payment From Client.The Difference in Currency Taken as Foreign Exchange Gain  / loss in Business.........

Ayush is right, if u received the sum in the same year

But if you have receivable then you have to follow AS-30

But dont worry it is not mandatory this year it will be mandatory from 01.04.2011

So You can well follow AS-11 i.e

You can recognize the receivables at the closing rate on the reporting date and any difference should transferred to Profit & Loss A/c as per AS-11

Foreign Company just treat a party and similarly book a entry just like indian party.

but currency u have to book in INR and year end u have to book foreign currency exchange loss.

Detailed u have to read AS -11

thanks