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\begin{array}{l}\phantom{16)}\phantom{1}\\16\overline{)81}\\\end{array}
Use the 1^{st} digit 8 from dividend 81
\begin{array}{l}\phantom{16)}0\phantom{2}\\16\overline{)81}\\\end{array}
Since 8 is less than 16, use the next digit 1 from dividend 81 and add 0 to the quotient
\begin{array}{l}\phantom{16)}0\phantom{3}\\16\overline{)81}\\\end{array}
Use the 2^{nd} digit 1 from dividend 81
\begin{array}{l}\phantom{16)}05\phantom{4}\\16\overline{)81}\\\phantom{16)}\underline{\phantom{}80\phantom{}}\\\phantom{16)9}1\\\end{array}
Find closest multiple of 16 to 81. We see that 5 \times 16 = 80 is the nearest. Now subtract 80 from 81 to get reminder 1. Add 5 to quotient.
\text{Quotient: }5 \text{Reminder: }1
Since 1 is less than 16, stop the division. The reminder is 1. The topmost line 05 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 5.