We introduce a biologically and psychologically plausible neuronal model wh
ich could explain how pictorial reasoning is carried out by the human brain
. This biologically inspired model throws some light on how some problem-so
lving abilities might actually be performed by the human brain using neural
cell assemblies. It also highlights the benefits of distributed representa
tion. These benefits include the ability to learn from experience, heuristi
cs resulting from picture representation and the ability to deal with noisy
information. The description of the reasoning process by formation of asso
ciations gives flexibility and power in operation. The proper way to use it
, the proper data representations and the proper network architecture are p
resented in this paper.