Base

Using grey yarn, shape a magic ring.

1st round: 3 ch (= 1st tr, also in next r.), 2 tr in the ring, (2 ch, 3 tr in the ring) 3 times; pull the end of yarn tightening the ring, then close with 1 ch and 1 dc in 3rd beg. ch.

2nd round: 3 ch and 1 tr in last r. of prev. row, 1 tr in each tr until next corner space, * (2 tr, 2 ch, 2 tr) in 2-ch-space, 1 tr in each tr until next corner space. *, rep. from * to * twice more, 2 tr in same space of 3 beg. ch; 1 ch and 1 dc in 3rd beg. ch.

From 3rd to 10th round: cont. rep. 2nd round and foll. the diagram. At the end of 10th round do not cut the thread.

Before working the sides, PM in central st. of each side of square motif, red highlighted in the diagram.

Sides

From 11th round, you have same number of sts., as you decr. 4 sts. in the centre of each side and incr. 4 sts. in every corner space.

11th round: 3 ch and 1 tr in last space of prev. row, * 1 tr in each of next sts. until 1 st. before the M, skip 3 next sts. (1 st. before the M, 1 st. with the M and 1 st. after the M), 1 tr in each of next sts. until next 2-ch-corner-space, move the M into the space between 2 central tr of the side, (2 tr, 2 ch, 2 tr) in the corner space *, rep. from * to * 3 times more, without last 2 tr in last repetition and working 1 ch and 1 dc in 3rd beg. ch instead of last 2 ch.

12th round: 3 ch and 1 tr in last space of prev. row, * 1 tr in each of next st. until 3 sts. before the M, 2 tr tog. on next 2 sts., skip the st. before the M and skip the st. after the M (diagram), 1 tr in each tr until next 2-ch-corner-space, move the M into the space between 2 central tr of the side, (2 tr, 2 ch, 2 tr) in the corner space *, rep. from * to * 3 times more, without last 2 tr in last repetition and working 1 ch and 1 dc in 3rd beg. ch instead of last 2 ch.

13th round: rep. 12th round.

14th and 15th round: using yellow col., rep. 12th round.

16th round: rep. 12th round, working the corner groups (2 tr, 2 ch, 2 tr) and 2 groups of 2 tr tog. in the centre of each side using yellow col., and the rem. sts. with grey col.

From 17th to 27th round: rep. 12th round, working the corner groups (2 tr, 2 ch, 2 tr) with yellow col. and the rem. sts. with grey col.

NB: to increase the heigh of the sides, work rounds extra.

Cut and tie off the yarn. Hide the ends inside the fabric.

HANDLES AND FINISHING

Join the grey yarn in 2-ch-corner-space of last round with 1 sc and work 40 ch (or depending on the desired length for your handle), 1 sc in next 2-ch-corner-space. Cut and tie off the thread.

Rep. the same for next 2 corner spaces.

Give the finishing touch to inner edge of 2 handles and the top edge of the bag (between 2 handles), working one round in dc. On both sides of the bag, on outer edge of handles and top edges of the bag (between the handles) work one round in dc.

Using darning needle, hide the ends on WS.