1978 KZ1000 LTD B2 - Location of Rear Axle Washer in Relation to Chain Adjuster

I took the rear wheel off my 1978 LTD to work on the brake caliper. I noticed whoever put the wheel on last placed the 20mm washer (part #92022-248) between the collar (#42032-071) and the chain adjuster (#33044-001), as shown in this picture:

 

It felt impossible to get the wheel back on in this configuration, like there wasn't enough space between the swing arm's forks. So I wondered if the washer is actually supposed to go between the castle nut and the chain adjuster like so:

 

None of the service and parts diagrams I looked at showed the relationship between the 20mm washer and the chain adjuster, so I was hoping one of you guys would know. Thanks!

BlueKZ_3 wrote:

It felt impossible to get the wheel back on in this configuration, like there wasn't enough space between the swing arm's forks. So I wondered if the washer is actually supposed to go between the castle nut and the chain adjuster.
Thanks!

Yes! the washer is for the nut.
The PO assembled it incorrectly.

That is the same conclusion I came to...that small spacer/thick washer has to go between the nut and chain adjuster. All the literature I went through was fairly vague on the thick washers position.