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\begin{array}{l}\phantom{100)}\phantom{1}\\100\overline{)2563}\\\end{array}
Use the 1^{st} digit 2 from dividend 2563
\begin{array}{l}\phantom{100)}0\phantom{2}\\100\overline{)2563}\\\end{array}
Since 2 is less than 100, use the next digit 5 from dividend 2563 and add 0 to the quotient
\begin{array}{l}\phantom{100)}0\phantom{3}\\100\overline{)2563}\\\end{array}
Use the 2^{nd} digit 5 from dividend 2563
\begin{array}{l}\phantom{100)}00\phantom{4}\\100\overline{)2563}\\\end{array}
Since 25 is less than 100, use the next digit 6 from dividend 2563 and add 0 to the quotient
\begin{array}{l}\phantom{100)}00\phantom{5}\\100\overline{)2563}\\\end{array}
Use the 3^{rd} digit 6 from dividend 2563
\begin{array}{l}\phantom{100)}002\phantom{6}\\100\overline{)2563}\\\phantom{100)}\underline{\phantom{}200\phantom{9}}\\\phantom{100)9}56\\\end{array}
Find closest multiple of 100 to 256. We see that 2 \times 100 = 200 is the nearest. Now subtract 200 from 256 to get reminder 56. Add 2 to quotient.
\begin{array}{l}\phantom{100)}002\phantom{7}\\100\overline{)2563}\\\phantom{100)}\underline{\phantom{}200\phantom{9}}\\\phantom{100)9}563\\\end{array}
Use the 4^{th} digit 3 from dividend 2563
\begin{array}{l}\phantom{100)}0025\phantom{8}\\100\overline{)2563}\\\phantom{100)}\underline{\phantom{}200\phantom{9}}\\\phantom{100)9}563\\\phantom{100)}\underline{\phantom{9}500\phantom{}}\\\phantom{100)99}63\\\end{array}
Find closest multiple of 100 to 563. We see that 5 \times 100 = 500 is the nearest. Now subtract 500 from 563 to get reminder 63. Add 5 to quotient.
\text{Quotient: }25 \text{Reminder: }63
Since 63 is less than 100, stop the division. The reminder is 63. The topmost line 0025 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 25.