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\begin{array}{l}\phantom{40)}\phantom{1}\\40\overline{)2558}\\\end{array}
Use the 1^{st} digit 2 from dividend 2558
\begin{array}{l}\phantom{40)}0\phantom{2}\\40\overline{)2558}\\\end{array}
Since 2 is less than 40, use the next digit 5 from dividend 2558 and add 0 to the quotient
\begin{array}{l}\phantom{40)}0\phantom{3}\\40\overline{)2558}\\\end{array}
Use the 2^{nd} digit 5 from dividend 2558
\begin{array}{l}\phantom{40)}00\phantom{4}\\40\overline{)2558}\\\end{array}
Since 25 is less than 40, use the next digit 5 from dividend 2558 and add 0 to the quotient
\begin{array}{l}\phantom{40)}00\phantom{5}\\40\overline{)2558}\\\end{array}
Use the 3^{rd} digit 5 from dividend 2558
\begin{array}{l}\phantom{40)}006\phantom{6}\\40\overline{)2558}\\\phantom{40)}\underline{\phantom{}240\phantom{9}}\\\phantom{40)9}15\\\end{array}
Find closest multiple of 40 to 255. We see that 6 \times 40 = 240 is the nearest. Now subtract 240 from 255 to get reminder 15. Add 6 to quotient.
\begin{array}{l}\phantom{40)}006\phantom{7}\\40\overline{)2558}\\\phantom{40)}\underline{\phantom{}240\phantom{9}}\\\phantom{40)9}158\\\end{array}
Use the 4^{th} digit 8 from dividend 2558
\begin{array}{l}\phantom{40)}0063\phantom{8}\\40\overline{)2558}\\\phantom{40)}\underline{\phantom{}240\phantom{9}}\\\phantom{40)9}158\\\phantom{40)}\underline{\phantom{9}120\phantom{}}\\\phantom{40)99}38\\\end{array}
Find closest multiple of 40 to 158. We see that 3 \times 40 = 120 is the nearest. Now subtract 120 from 158 to get reminder 38. Add 3 to quotient.
\text{Quotient: }63 \text{Reminder: }38
Since 38 is less than 40, stop the division. The reminder is 38. The topmost line 0063 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 63.