Leaving a long yarn tail, cast on 15 stitches. Beginning with a knit row, work in Stockinette stitch (knit on right side, purl on wrong side) until piece measures about 14 in. (35.5 cm)
With wrong side facing up, fold cast on edge up to form a 9 in. (23 cm) square. Thread yarn tail through needle and seam side edge. Cut yarn and seam opposite side edge.
Knot and Loop Closure
Cut a 14 in. (35.5 cm) length of yarn and fold in half. With fingers, pull fold through to right side, centered above bound off edge, pull fold under loops of bound off stitch and leave a loop about 1 1/4 in. (3 cm) long hanging below edge. Secure ends on wrong side with needle and thread. Cut a 50 in. (127 cm) length of yarn and fold in quarters. With the four strands held as one, tie a square knot (right over left and under, left over right and under) in the center. With flap of Clutch folded closed, pull ends of knot through bottom of Clutch under loop. With needle and thread stitch ends to secure on wrong side.
Weave in ends.