Here's how this rhyme is done by kids in Keene, NH these days:

Down by the banks
of the hanky-panky
where the bull frog
jumps from
bank to banky
with a
hip
hop
flip
floop
Missed that banky and went
ker-plop!

The kids sit or stand in a circle, palms up, arms extended to the side, left hand over neighbor's right palm. One child starts by slapping his/her left hand across to his/her right, passing the slap around the circle until "kerplop" when the child about to be slapped has to pull his/her hand out of the way, or else be eliminated.

It's a great way to focus a whole class. The eliminated kids automatically start their own circle going as soon as they have critical mass...