Here is how to create your gift bag.
Taking your 12x12 sheet, score the bottom and sides at 3". Score the top at 2". I've done this little diagram on some grid paper as it's easier to see than on the dsp!

You then fold over the 2" score line so that this will be showing the 'back' of the paper.

Next, taking one of your sheets, you need to cut out the bottom 3x3 squares along your score lines as shown below.


On the second sheet, you want to cut along the horizontal 3" lines only.

To make the bottom of your gift bag sturdy, Jackie added in a 3" x 6" piece of cardstock to the bottom flap of one of the pieces of dsp.

You are now ready to put your bag together. Make sure you have the paper the right way, I had my flap the wrong way, so a quick fix before I stuck it down was to turn over the flap! Once you are sure you have your paper the right way around, 1 - glue the '3" square" flaps and adhere to the side flap, this is where I hope that makes sense and the picture below explains what I mean!

2 - adhere the remaining slide flaps.

All being well, you have your 2" top folded the right way and you have your bag.

All you need to do now is punch some holes to add your handles. You can also step it up and add some embellishments to your bag to make it more personal.