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\begin{array}{l}\phantom{32)}\phantom{1}\\32\overline{)120}\\\end{array}
Use the 1^{st} digit 1 from dividend 120
\begin{array}{l}\phantom{32)}0\phantom{2}\\32\overline{)120}\\\end{array}
Since 1 is less than 32, use the next digit 2 from dividend 120 and add 0 to the quotient
\begin{array}{l}\phantom{32)}0\phantom{3}\\32\overline{)120}\\\end{array}
Use the 2^{nd} digit 2 from dividend 120
\begin{array}{l}\phantom{32)}00\phantom{4}\\32\overline{)120}\\\end{array}
Since 12 is less than 32, use the next digit 0 from dividend 120 and add 0 to the quotient
\begin{array}{l}\phantom{32)}00\phantom{5}\\32\overline{)120}\\\end{array}
Use the 3^{rd} digit 0 from dividend 120
\begin{array}{l}\phantom{32)}003\phantom{6}\\32\overline{)120}\\\phantom{32)}\underline{\phantom{9}96\phantom{}}\\\phantom{32)9}24\\\end{array}
Find closest multiple of 32 to 120. We see that 3 \times 32 = 96 is the nearest. Now subtract 96 from 120 to get reminder 24. Add 3 to quotient.
\text{Quotient: }3 \text{Reminder: }24
Since 24 is less than 32, stop the division. The reminder is 24. The topmost line 003 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 3.