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\begin{array}{l}\phantom{16)}\phantom{1}\\16\overline{)12345}\\\end{array}
Use the 1^{st} digit 1 from dividend 12345
\begin{array}{l}\phantom{16)}0\phantom{2}\\16\overline{)12345}\\\end{array}
Since 1 is less than 16, use the next digit 2 from dividend 12345 and add 0 to the quotient
\begin{array}{l}\phantom{16)}0\phantom{3}\\16\overline{)12345}\\\end{array}
Use the 2^{nd} digit 2 from dividend 12345
\begin{array}{l}\phantom{16)}00\phantom{4}\\16\overline{)12345}\\\end{array}
Since 12 is less than 16, use the next digit 3 from dividend 12345 and add 0 to the quotient
\begin{array}{l}\phantom{16)}00\phantom{5}\\16\overline{)12345}\\\end{array}
Use the 3^{rd} digit 3 from dividend 12345
\begin{array}{l}\phantom{16)}007\phantom{6}\\16\overline{)12345}\\\phantom{16)}\underline{\phantom{}112\phantom{99}}\\\phantom{16)9}11\\\end{array}
Find closest multiple of 16 to 123. We see that 7 \times 16 = 112 is the nearest. Now subtract 112 from 123 to get reminder 11. Add 7 to quotient.
\begin{array}{l}\phantom{16)}007\phantom{7}\\16\overline{)12345}\\\phantom{16)}\underline{\phantom{}112\phantom{99}}\\\phantom{16)9}114\\\end{array}
Use the 4^{th} digit 4 from dividend 12345
\begin{array}{l}\phantom{16)}0077\phantom{8}\\16\overline{)12345}\\\phantom{16)}\underline{\phantom{}112\phantom{99}}\\\phantom{16)9}114\\\phantom{16)}\underline{\phantom{9}112\phantom{9}}\\\phantom{16)999}2\\\end{array}
Find closest multiple of 16 to 114. We see that 7 \times 16 = 112 is the nearest. Now subtract 112 from 114 to get reminder 2. Add 7 to quotient.
\begin{array}{l}\phantom{16)}0077\phantom{9}\\16\overline{)12345}\\\phantom{16)}\underline{\phantom{}112\phantom{99}}\\\phantom{16)9}114\\\phantom{16)}\underline{\phantom{9}112\phantom{9}}\\\phantom{16)999}25\\\end{array}
Use the 5^{th} digit 5 from dividend 12345
\begin{array}{l}\phantom{16)}00771\phantom{10}\\16\overline{)12345}\\\phantom{16)}\underline{\phantom{}112\phantom{99}}\\\phantom{16)9}114\\\phantom{16)}\underline{\phantom{9}112\phantom{9}}\\\phantom{16)999}25\\\phantom{16)}\underline{\phantom{999}16\phantom{}}\\\phantom{16)9999}9\\\end{array}
Find closest multiple of 16 to 25. We see that 1 \times 16 = 16 is the nearest. Now subtract 16 from 25 to get reminder 9. Add 1 to quotient.
\text{Quotient: }771 \text{Reminder: }9
Since 9 is less than 16, stop the division. The reminder is 9. The topmost line 00771 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 771.