I can sense this is a learning project so I'm going to let you learn some basics before telling you how to find the proper place for the distributor and wire the cap in the proper sequence.
In the first place we can't run the engine without a carburetor unless you want a good hair raising time and possibly put a rod out the side of the block.There is no good control of the engine speed.
Search on this board to find how to locate top center of #1 cylinder and how to tell if it is on the firing stroke or the exhaust stroke--then search to learn how to put the wires in proper sequence in the cap.
What about getting a good carb on it and feeding from a elevated can by gravity for a short run.Be careful to not allow spilled gasoline--it can provide an exciting experience if not destructive.
Good luck and keep us posted-someone will fill in the blanks and you will come out of it with a better understanding of not just this engine but most engines.

Bob Taylor