At 19:12 the DC-3 took off from Sydney runway 07 for a flight to Tamworth. At a height of bout 200 feet the one of the engines backfired severely. The pilot-in-command noticed that the no. 1 engine was about 150 rpm below the no. 2 engine. The pilot reduced power on that engine and , not noticing any violent signs of malfunction, applied power again to 32 inches manifold pressure. The engine backfired again, so the no. 1 prop was feathered immediately. A left turn was initiated with the intention of making an approach to runway 16. The aircraft was losing height fast, so the pilot decided to try an emergency landing on runway 25 instead. This wasn’t possible also, so the aircraft was eventually ditched in a lake 2 miles east of the airport at 150 feet from the nearest bank where the water was 10-15 feet deep. It appeared that the pilot had shut down the wrong engine. The no. 2 cylinder head of the no. 2 engine had cracked. No damage was found on the no. 1 engine. PROBABLE CAUSE: “The pilot-in-command, on becoming aware of an engine defect, took action to feather a propeller on the basis of evidence that was insufficient to ensure correct identification of the defective engine.”