An accused killer said he wanted to put Bradley Breward to sleep as he held a plastic bag tight over the alleged victim's head, a jury has heard.
Mark Rodney Jones has pleaded not guilty to murdering Mr Breward on New Year's Day in 2017.
The night before Mr Breward was allegedly killed he slept on a couch at his friend Cody Lee's Newnham unit.
When giving evidence in the Launceston Supreme Court trial on Thursday, Mr Lee said he woke up on New Year's Day to the sound of the unit's sliding door banging opening.
It was alleged Ricky Izard entered Mr Lee's bedroom wearing gloves and a mask while wielding a screwdriver.
"He told me to stay there, they're not here for me, they're here for information," Mr Lee said.
The court heard Mr Izard was with his boss Mr Jones, who'd been searching for Mr Breward in relation to a stolen Nissan Patrol.
Mr Lee said he could hear a struggle in the lounge room.
"I was scared. I didn't know what was going on," he said.
The court heard when Mr Lee left the bedroom to have a cigarette he saw Mr Jones on top of Mr Breward.
Mr Jones asked Mr Breward where his ute was but he didn't get any information, the jury was told.
Mr Lee said he saw Mr Breward be punched and kicked multiple times.
A cloth was placed over Mr Breward's face and water was poured over it in 10 to 15-second intervals, Mr Lee said.
The court heard Mr Jones also deprived Mr Breward of oxygen by wrapping a Woolworths' bag over Mr Breward's head.
It was alleged Mr Breward was "making noises", so Mr Izard told Mr Jones to let him breathe.
"Mark said he didn't want him to breathe and wanted to put him to sleep," Mr Lee said.
"He was choking and then he stopped choking, and that's when Mark took the bag off his head," Mr Lee said.
The three men performed CPR on Mr Breward after Mr Jones checked his breathing, the court heard.
"When he [Mr Jones] pushed on his chest juice came out of Brad's mouth," Mr Lee said.
The court heard Mr Jones and Mr Izard wrapped Mr Breward in a beanbag and tarpaulin, strapped weights to his body and dumped the body at Melrose Quarry.
Defence lawyer Greg Richardson asked Mr Lee if he helped put Mr Breward's body in the beanbag, but he said he didn't.
Mr Lee also denied knowing Mr Jones was coming to his apartment after his then-girlfriend Tina Robertson allegedly tipped him off about Mr Breward's location.
The trial before Justice Robert Pearce continues.