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\begin{array}{l}\phantom{1000)}\phantom{1}\\1000\overline{)78125}\\\end{array}
Use the 1^{st} digit 7 from dividend 78125
\begin{array}{l}\phantom{1000)}0\phantom{2}\\1000\overline{)78125}\\\end{array}
Since 7 is less than 1000, use the next digit 8 from dividend 78125 and add 0 to the quotient
\begin{array}{l}\phantom{1000)}0\phantom{3}\\1000\overline{)78125}\\\end{array}
Use the 2^{nd} digit 8 from dividend 78125
\begin{array}{l}\phantom{1000)}00\phantom{4}\\1000\overline{)78125}\\\end{array}
Since 78 is less than 1000, use the next digit 1 from dividend 78125 and add 0 to the quotient
\begin{array}{l}\phantom{1000)}00\phantom{5}\\1000\overline{)78125}\\\end{array}
Use the 3^{rd} digit 1 from dividend 78125
\begin{array}{l}\phantom{1000)}000\phantom{6}\\1000\overline{)78125}\\\end{array}
Since 781 is less than 1000, use the next digit 2 from dividend 78125 and add 0 to the quotient
\begin{array}{l}\phantom{1000)}000\phantom{7}\\1000\overline{)78125}\\\end{array}
Use the 4^{th} digit 2 from dividend 78125
\begin{array}{l}\phantom{1000)}0007\phantom{8}\\1000\overline{)78125}\\\phantom{1000)}\underline{\phantom{}7000\phantom{9}}\\\phantom{1000)9}812\\\end{array}
Find closest multiple of 1000 to 7812. We see that 7 \times 1000 = 7000 is the nearest. Now subtract 7000 from 7812 to get reminder 812. Add 7 to quotient.
\begin{array}{l}\phantom{1000)}0007\phantom{9}\\1000\overline{)78125}\\\phantom{1000)}\underline{\phantom{}7000\phantom{9}}\\\phantom{1000)9}8125\\\end{array}
Use the 5^{th} digit 5 from dividend 78125
\begin{array}{l}\phantom{1000)}00078\phantom{10}\\1000\overline{)78125}\\\phantom{1000)}\underline{\phantom{}7000\phantom{9}}\\\phantom{1000)9}8125\\\phantom{1000)}\underline{\phantom{9}8000\phantom{}}\\\phantom{1000)99}125\\\end{array}
Find closest multiple of 1000 to 8125. We see that 8 \times 1000 = 8000 is the nearest. Now subtract 8000 from 8125 to get reminder 125. Add 8 to quotient.
\text{Quotient: }78 \text{Reminder: }125
Since 125 is less than 1000, stop the division. The reminder is 125. The topmost line 00078 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 78.