Paid about a pound for some cloth (5)
I believe the answer is:
plaid
'some cloth' is the definition.
(plaid is a kind of cloth)
'paid about a pound' is the wordplay.
'about' is an insertion indicator.
'a pound' becomes 'L' (the pound sign is based on an L).
'paid' enclosing 'l' is 'PLAID'.
'for' acts as a link.
(Other definitions for plaid that I've seen before include "Cloth for a Highlander" , "woollen cloth" , "Check fabric" , "piece of cloth" , "Tartan patterned cloth" .)