Easy Photo Frame with Photoshop Layer Styles

Step 1
Open a new document size 800x600. Import a picture you want to frame as above. Paint the Background layer with light gray color (temporary). Keep in mind that Image has be smaller than the document/canvas size so you can see the effect.

Step 2
Start framing the picture from basics with values given in example

Stroke
Size: 8px
Position: Inside
Blend Mode: Normal

Fill Type: color
Color: White

Inner Shadow
Blend Mode: Normal
Color: White
Opacity: 100%
Angle: 270
Distance: 34
Choke: 100%
Size: 0

Drop Shadow
Opacity: 40%
Distance: 5px
Spread: 0
Size: 8

And we are done for this particular frame style, you can reduce the Inner Shadow's Distance or other effects to get yourself different results.