My sisters and I would play this when we were younger in the 90's. Now they do it differently--especially the one that works with kids.
Both versions stood in a circle with overlapped hands that you would 'slap' on the beat as you chanted/sang. The person who was slapped on the last syllable was out.

Our first version went like this (very simple):
Down by the riverbank
Hanky panky
Hear the bull frogs jump
From bank to bank
Singing ooh ahh, ooh, ahh
East to the west
'is the bull frog.

Their newer version goes like this:
Down by the river banks hanky panky
where the bull frogs jump from bank to bank
Sayin' ooh ahh, ooh pa-pa,
Skiddle, diddle Kernel Pop
Now we're drinking 7-up
7-up has no caffeine
Now we're drinking gasoline
Gasoline tastes awful fine
Now we're drinking mount... ain...
DEW!! (on 'DEW' the one who is 'slapped' is out, and it begins again)