There are many questions relevant to baking in blender internal mode. But i could not find any solution to my problem. After creating the object I unwrapped it and saved the unwrapped image with a name. Next, I assigned a image texture in the texture properties panel. Next, I selected the image texture from the drop-down menu in the UV/Image editor and the texture is getting applied. Then, to bake the texture, I created a new image, and just when I am selecting the new image, the object is turning black. I can't proceed to bake any further. Still it's showing that no images found to bake to.