367E: Children’s book, dispute over bag, magical claims but ultimately not magic

From what I remember of this children’s book, there are people disputing over a small bag and someone asked them to describe what is in the bag to prove ownership. Fantastical claims are made of what’s in the bag, I believe they say animals are even in the bag, things that couldn’t possibly fit in a bag unless it was magic. In the end, the bag is not filled with any of these items. If I remember correctly, it is filled with fruit peels and seeds? Or something similar. I believe it’s set in the Middle East but I can’t fully remember. This is a book I thought about many times over the years since reading in the late 90s as a child but I’m not even sure I remember it correctly. I’m hoping someone can point me in the right direction.

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