Open Photoshop. Open the image to create Torn Paper.

Choose the lasso tool (L) and draw a ragged selection line .

Go to Edit -> Fill -> White color (or Shift+ F5).

Inverse selection: Select -> Inverse (Shift+Ctrl+I).
Copy the contetns on a new layer by choosing Edit -> Copy (or Ctrl + C) and Edit -> Paste (or Ctrl + V). Photoshop will automatically paste it into a new layer.

Make a new selection close to the edge.
Copy the contetns on a new layer: Edit -> Copy (or Ctrl + C) and Edit -> Paste (or Ctrl + V).

Select the contents of the new layer by Control-clicking on it.
Apply Filter -> Render -> Clouds.
Go to Image -> Adjustments -> Brightness/Contrast. Increase the brightness and decrease the contrast until you get satisfying result.
Apply Filter -> Noise -> Add Noise. Amount: 9%; Distribution: Gaussian; Monochromatic.
Deselect (Ctrl+D).

You can add Drop Shadow on your picture layer using these settings:

Open Photoshop. Open the image to create Torn Edge frame.

Right-click on the layer and choose Duplicate Layer. Select background layer and fill with white color (Edit -> Fill -> White).
On duplicated layer, use the rectangular marquee tool and select just inside of your image. Invert the selection Select>Inverse (Shift+Ctrl+I) .

Press the Q key on your keyboard to enter the Quick Mask Mode.
Choose Filter>Distort>Ripple (amount 150%; size Medium).

Press Q of your keyboard to leave the Quick Mask Mode. Hit Delete. Deselect.