No spark on a battery ignition points type Kohler: I turn the ignition switch on and put my test light on the coil +. If it lights, I put my test light on the coil -. It will either light if the points are open or not light if the points are closed. Hit starter button and spin it over, the light should blink/come on every time the points open.
No blink when spinning, remove the cover, check the light again. Sometimes the cover shorts the points wire. I have also seen the wire support tab at the camshaft cover ground the wire, but that is much more rare.
See if the points are moving at all. If they are opening and closing, do they close all the way? While the cover is off, file the points. You are supposed to remove, file and reinstall them, I usually just slide my file between them a few passes, with the ignition switch off. check spark again. You should be getting a pretty good spark now, if not its probably time to swap in known-to-work components. with the points closed, you can also test the circuit manually by opening the points, be sure you are not short circuiting around the points circuit if you do this with a screwdriver.
If still no spark, try swaping known good components, like sparkplug, coil, condenser and retest.