She said they arrived at the Ocean Beach Hotel around 8pm that night.

"We all went inside and I guess at the time we all had a lot of friends there so we went in and socialised with them," she said.

"We stayed till it closed at 12 o'clock.

"I think I was probably drinking beer, Sarah was drinking.

"She was happy, she was talking with friends, I wasn't sort of with her the whole time.

"She was wearing beige linen shorts, a light or white-coloured shirt and she had a black jacket tied around her waist and light-coloured shoes."

Ms McCormack is now being asked about when the group arrived at Club Bayview in Claremont around 12.30am after being dropped off by Amanda Spiers.

"Sarah went off with Anne and we were just sort of talking to different people so I didn't directly observe her the whole night," she said.

"She was happy, just talking with friends, she didn't seem upset, as I said I wasn't with her the whole time but there was nothing unusual."

Ms McCormack is now recalling when Sarah came up to her on the dance floor around 1.30am and told her she was leaving.

Ms McCormack said she encouraged Sarah to stay and leave later with the group.

"She said, 'No that's fine, I'm ready to go now, I'm just going to catch a taxi' and I said ok and she walked out the door that leads down the stairs," she said.

"She spoke to me clearly, she wasn't upset she just was going to leave, she seemed normal, there was nothing unusual."

Ms Payne: Is that the last time you saw Sarah that night?

Ms McCormack: (tearing up) Yes.

Mr Yovich has chosen not to cross-examine Ms McCormack.

She has finished her evidence and has become emotional while walking out of the courtroom.