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\begin{array}{l}\phantom{120)}\phantom{1}\\120\overline{)2001}\\\end{array}
Use the 1^{st} digit 2 from dividend 2001
\begin{array}{l}\phantom{120)}0\phantom{2}\\120\overline{)2001}\\\end{array}
Since 2 is less than 120, use the next digit 0 from dividend 2001 and add 0 to the quotient
\begin{array}{l}\phantom{120)}0\phantom{3}\\120\overline{)2001}\\\end{array}
Use the 2^{nd} digit 0 from dividend 2001
\begin{array}{l}\phantom{120)}00\phantom{4}\\120\overline{)2001}\\\end{array}
Since 20 is less than 120, use the next digit 0 from dividend 2001 and add 0 to the quotient
\begin{array}{l}\phantom{120)}00\phantom{5}\\120\overline{)2001}\\\end{array}
Use the 3^{rd} digit 0 from dividend 2001
\begin{array}{l}\phantom{120)}001\phantom{6}\\120\overline{)2001}\\\phantom{120)}\underline{\phantom{}120\phantom{9}}\\\phantom{120)9}80\\\end{array}
Find closest multiple of 120 to 200. We see that 1 \times 120 = 120 is the nearest. Now subtract 120 from 200 to get reminder 80. Add 1 to quotient.
\begin{array}{l}\phantom{120)}001\phantom{7}\\120\overline{)2001}\\\phantom{120)}\underline{\phantom{}120\phantom{9}}\\\phantom{120)9}801\\\end{array}
Use the 4^{th} digit 1 from dividend 2001
\begin{array}{l}\phantom{120)}0016\phantom{8}\\120\overline{)2001}\\\phantom{120)}\underline{\phantom{}120\phantom{9}}\\\phantom{120)9}801\\\phantom{120)}\underline{\phantom{9}720\phantom{}}\\\phantom{120)99}81\\\end{array}
Find closest multiple of 120 to 801. We see that 6 \times 120 = 720 is the nearest. Now subtract 720 from 801 to get reminder 81. Add 6 to quotient.
\text{Quotient: }16 \text{Reminder: }81
Since 81 is less than 120, stop the division. The reminder is 81. The topmost line 0016 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 16.