I have a sony cybershot dsc-w350 where the back lcd screen does not show shutter image, but shows all menu options. However when data cable is connected to the PC, all images show fine, hence I have gathered that the lens is fine, advice please

When you're in picture mode, try hitting "DISP" a few times. On my camera at least, hitting a similar button cycles through a few display options. As long as the screen works, you should have an option to see the image on the LCD screen.