A man who walked into an alleged murder scene as a teenager says he saw a body being moved in a rug and a trail of blood down a corridor.
The man, who cannot be named, says he also saw a hammer with a piece of skin on it as he walked around the far north Queensland house where the killing allegedly took place.
Nicholas Collins' skeletal remains, including his badly bashed skull, were found in mangroves five months after he was allegedly murdered with a hammer by Hamish Stewart Murray in November 2012.
A young man who was at the house for part of the alleged attack told the Cairns Supreme Court on Tuesday he saw Murray and his occasional lover, Marnie Peckham, move the 30-year-old's body in a rug.
"Just his shoes" were visible, he said.
The young man also described seeing blood "everywhere" in the living room of the Cairns house, which Peckham shared with her mother.
In the garage "there was a hammer with a piece of skin still on it", he said.
Peckham, who is serving a jail sentence for being an accessory after the fact, earlier told the court she was scared after she helped move Mr Collins.
But she stayed at Murray's house for a week and had sex with him despite seeing him dispose of the naked body, the court heard.
The pair had taken drugs, including ice, together a number of times, she said.
Murray, whose nickname was "Hammer", admits to killing Mr Collins but says it was in self defence.
The Crown alleges Peckham found a bloodied Mr Collins with duct tape covering his eyes and Murray, 39, holding a hammer in his left hand on the day of the death.
Defence barrister Joshua Trevino said Peckham's descriptions of the alleged murder weapon have been inconsistent and she was wrong about seeing Murray holding a hammer.
He said she had helped move the body in a "panic" and off her own bat.
"When you came downstairs, Mr Murray told you that Nick nearly killed him?" Mr Trevino said.
"No," Peckham replied.
She earlier told the court she repeatedly removed herself from the room where Mr Collins was bashed but could not escape the sounds of him being hit.
The 42-year-old said she sheltered with the teenager in a bathroom and tried to cover his ears as Mr Collins moaned.
But the teenager says he was only ever alone in the bathroom.
The trial continues.
