This handbag is knit in stockinette. Its pretty much a rectangle, you can increase after the beginning rows and decrease at the end rows to have a smaller area to wrap around the handles. When sewing the side seams, don’t go all the way to the top so you’ll have room when you open it. I made a pouch with a zipper (sewed on a sewing machine) for the inside. It has to be sewn in, but its good to have because it better protects your valuables. A few rows of ribbing were done on the front for decoration, its not continuous, there is a row or two of stockinette in the middle of that section to keep it from pulling inward.
After the comment, I realized I was not very descriptive on how to construct this purse. Here is a drawing. Make a rectangle as wide as you want the purse, and long enough to be the height you want the purse when you fold it in half – minus the top areas which will be folded over the handles. Then:
When seaming the sides make sure to loop the yarn around at the tops very well and tie a knot, or if sewing, backstitch. Do something very secure so that the stitching won’t come out as the purse is used.
Yarn is acrylic, Red Heart, color: Aspen Print. To find purse handles, do a search for “purse handles round bamboo”, these measure a little under 6 inches on the inside.