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\begin{array}{l}\phantom{16)}\phantom{1}\\16\overline{)986}\\\end{array}
Use the 1^{st} digit 9 from dividend 986
\begin{array}{l}\phantom{16)}0\phantom{2}\\16\overline{)986}\\\end{array}
Since 9 is less than 16, use the next digit 8 from dividend 986 and add 0 to the quotient
\begin{array}{l}\phantom{16)}0\phantom{3}\\16\overline{)986}\\\end{array}
Use the 2^{nd} digit 8 from dividend 986
\begin{array}{l}\phantom{16)}06\phantom{4}\\16\overline{)986}\\\phantom{16)}\underline{\phantom{}96\phantom{9}}\\\phantom{16)9}2\\\end{array}
Find closest multiple of 16 to 98. We see that 6 \times 16 = 96 is the nearest. Now subtract 96 from 98 to get reminder 2. Add 6 to quotient.
\begin{array}{l}\phantom{16)}06\phantom{5}\\16\overline{)986}\\\phantom{16)}\underline{\phantom{}96\phantom{9}}\\\phantom{16)9}26\\\end{array}
Use the 3^{rd} digit 6 from dividend 986
\begin{array}{l}\phantom{16)}061\phantom{6}\\16\overline{)986}\\\phantom{16)}\underline{\phantom{}96\phantom{9}}\\\phantom{16)9}26\\\phantom{16)}\underline{\phantom{9}16\phantom{}}\\\phantom{16)9}10\\\end{array}
Find closest multiple of 16 to 26. We see that 1 \times 16 = 16 is the nearest. Now subtract 16 from 26 to get reminder 10. Add 1 to quotient.
\text{Quotient: }61 \text{Reminder: }10
Since 10 is less than 16, stop the division. The reminder is 10. The topmost line 061 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 61.