Here we will use specially blending options of layer.

1. Open a new document in Photoshop of any size (here I use 640 / 480 px) and fill with Gradient Color (Foreground = #74a6d7 and Background = #3e679b color).

2. To add a nice grass to your canvas, create a shape using Pen tool as shown then Right-click > Make Selection then apply the settings as shown below:

3. Now create a new layer then using Brush tool (set the Foreground #78b943 and Background #0f4b00 color) apply in the selected area. Use the combination of two brushes as shown below to create grass.

4. Now to add railway track Ctrl + Select the Grass layer and go to Select > Modify > Expand20px. Fill with #414141 color on a new layer. Again Ctrl + Select the grass layer and with the new layer selected press Delete. by

5. Right-click on the new layer and select Blending Options (or double click on the layer). Select the options as shown below:

6. Then press the Down Arrow 2 times to hide the unwanted areas.

7. Now to create cloud press Shift + Elliptical Marquee tool create shapes as shown and fill with White color on a new layer.

8. Then press Ctrl + D to deselect and go to Filter > Blur > Gaussian Blur = 7%.

9. To create a frame for the Scrapbook I use Pen tool make a shape as shown, then right-click on it select Make Selection. Select the options as shown below:

10. Create a new layer and fill with a nice color (Here I use #d24a18). Now create a rectangle using Polygonal Lasso tool in the middle of the new shape then press Delete.

11. Press Ctrl + D then double-click the shape layer and apply the Blending Options as shown below:

12. With Pen tool create a shape as shown on the left hand of the frame then Right-click > Make Selection> select the default options.

13. Fill with desired color on a new layer, set Fill = 0% then double-click the new layer select default Drop Shadow options.

14. Duplicate the new layer go to Edit > Transform > Flip Horizontal then place it on the right site of the frame.