Download http://joomlacode.org/gf/download/frsrelease/19007/134333/Joomla_3.2.1-Stable-Full_Package.zip
extrack zip file in a folder and locate it in xampp/htdocs/ directory.
Run your apache and mysql services. on your browser open localhost/(direcoryname) the installation will begin.
Fill all the information Click on Next.
Give the database information it's not need to create a database. it will automatically create database (Fill all information). Click on Next.
There is no need to give the information about ftp. (If you need then give the your ftp information). Click on Next.
After that the finalization tab will be active for installation your joomla in xampp. Click on Install for installation.
Now your installation will be complete. Then it say to remove the installation folder (removed it.) and you are ready to access your joomla on your pc.