Former detective Roger Rogerson has dismissed claims he handled a gun on the day a Jamie Gao died, as "rubbish, rubbish, rubbish" despite gunshot residue being found on his pants.

Rogerson, 75, and another former policeman Glen McNamara are accused of the shooting murder of 20-year-old Gao in a Sydney storage shed in May 2014.

"I put it to you - the gun shot residue is there (on the tracksuit pants) because you handled a gun," crown prosecutor Chris Maxwell QC said during Rogerson and McNamara's NSW Supreme Court murder trial on Friday.

"Again Mr Maxwell, that is rubbish, rubbish, rubbish," Rogerson replied.

The Crown alleges the two men killed Mr Gao and then stripped him of 2.78kg of the drug ice.

Rogerson denied allegations the pair had made an agreement that McNamara would claim he killed Mr Gao in self-defence if Rogerson became connected to the death.

He also denied allegations he threatened McNamara in his apartment after fearing he would go back on the agreement.

"I suggest that at Mr McNamara's apartment, you still had the gun in your pocket," Mr Maxwell said.

"I never had a gun," Rogerson replied on Friday.

The 13-person jury was played video of investigators searching Rogerson's bedroom.

Mr Maxwell suggested that a pair of tracksuit pants matching the description of the ones Rogerson wore on the day of Mr Gao's death must have been washed because they were found folded inside a drawer.

But Rogerson said he had numerous pairs of tracksuit pants and couldn't be sure the ones in the video were the ones he wore.

He denied having washed them in an attempt to remove gunshot residue and said his wife usually did the washing.

Mr Gao's body was found wrapped in a blue tarpaulin out at sea days after he was killed.

Rogerson says he found the student dead in the storage unit with a panicked McNamara, who told him the young man had shot himself accidentally in a physical struggle.

McNamara maintains it was Rogerson who shot Mr Gao.

The trial continues.

Read more at http://www.9news.com.au/national/2016/05/13/12/35/roger-rogerson-says-claims-he-handled-gun-is-rubbish#WoQhDXMLUG4wVyaZ.99