Story seen in new light when taken the wrong way (4)

I believe the answer is:

yarn

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'story' is the definition.
(synonyms)

'new light when taken the wrong way' is the wordplay.
'new' becomes 'n' (common abbreviation eg NT for New Testament).
'light when' becomes 'ray' (ray is a kind of light. I am not sure about the 'when' bit.).
'taken the wrong way' says the letters should be written backwards.
'n'+'ray'='nray'
'nray' written backwards gives 'YARN'.

'seen in' is the link.

Can you help me to learn more?

(Other definitions for yarn that I've seen before include "A long tale" , "Long involved story" , "Sailor's tale" , "Not fully credible story" , "Fabricated" .)

I've seen this clue in The Times.

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