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\begin{array}{l}\phantom{17)}\phantom{1}\\17\overline{)40}\\\end{array}
Use the 1^{st} digit 4 from dividend 40
\begin{array}{l}\phantom{17)}0\phantom{2}\\17\overline{)40}\\\end{array}
Since 4 is less than 17, use the next digit 0 from dividend 40 and add 0 to the quotient
\begin{array}{l}\phantom{17)}0\phantom{3}\\17\overline{)40}\\\end{array}
Use the 2^{nd} digit 0 from dividend 40
\begin{array}{l}\phantom{17)}02\phantom{4}\\17\overline{)40}\\\phantom{17)}\underline{\phantom{}34\phantom{}}\\\phantom{17)9}6\\\end{array}
Find closest multiple of 17 to 40. We see that 2 \times 17 = 34 is the nearest. Now subtract 34 from 40 to get reminder 6. Add 2 to quotient.
\text{Quotient: }2 \text{Reminder: }6
Since 6 is less than 17, stop the division. The reminder is 6. The topmost line 02 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 2.