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\begin{array}{l}\phantom{54)}\phantom{1}\\54\overline{)1234}\\\end{array}
Use the 1^{st} digit 1 from dividend 1234
\begin{array}{l}\phantom{54)}0\phantom{2}\\54\overline{)1234}\\\end{array}
Since 1 is less than 54, use the next digit 2 from dividend 1234 and add 0 to the quotient
\begin{array}{l}\phantom{54)}0\phantom{3}\\54\overline{)1234}\\\end{array}
Use the 2^{nd} digit 2 from dividend 1234
\begin{array}{l}\phantom{54)}00\phantom{4}\\54\overline{)1234}\\\end{array}
Since 12 is less than 54, use the next digit 3 from dividend 1234 and add 0 to the quotient
\begin{array}{l}\phantom{54)}00\phantom{5}\\54\overline{)1234}\\\end{array}
Use the 3^{rd} digit 3 from dividend 1234
\begin{array}{l}\phantom{54)}002\phantom{6}\\54\overline{)1234}\\\phantom{54)}\underline{\phantom{}108\phantom{9}}\\\phantom{54)9}15\\\end{array}
Find closest multiple of 54 to 123. We see that 2 \times 54 = 108 is the nearest. Now subtract 108 from 123 to get reminder 15. Add 2 to quotient.
\begin{array}{l}\phantom{54)}002\phantom{7}\\54\overline{)1234}\\\phantom{54)}\underline{\phantom{}108\phantom{9}}\\\phantom{54)9}154\\\end{array}
Use the 4^{th} digit 4 from dividend 1234
\begin{array}{l}\phantom{54)}0022\phantom{8}\\54\overline{)1234}\\\phantom{54)}\underline{\phantom{}108\phantom{9}}\\\phantom{54)9}154\\\phantom{54)}\underline{\phantom{9}108\phantom{}}\\\phantom{54)99}46\\\end{array}
Find closest multiple of 54 to 154. We see that 2 \times 54 = 108 is the nearest. Now subtract 108 from 154 to get reminder 46. Add 2 to quotient.
\text{Quotient: }22 \text{Reminder: }46
Since 46 is less than 54, stop the division. The reminder is 46. The topmost line 0022 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 22.