I'm from South Eastern Virginia and this was how we used to do it.. :)

Down by the bank where the hanky pank
where the bullfrogs jump from bank to bank
sayin east ist ost ust
Isabella ding dong.
Not last night but the night before
Someone came and knocked at my door,
Knock one, knock two, knock three, knock four...
knock knock OUT!

We would sit in a big circle outside (a bunch of little girls) with our left hands underneath the person to our left's palm (palms up) and then our right hands the opposite (above the person to our right's palm. Then we would slap on the beat from our right hand onto the person to the left's palm above ours in a circle until you were ended on in the song on the out (last word). Gosh I'm so glad other people know about this, it's so interesting how colloquial it can be!

Be well.