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\begin{array}{l}\phantom{16)}\phantom{1}\\16\overline{)5400}\\\end{array}
Use the 1^{st} digit 5 from dividend 5400
\begin{array}{l}\phantom{16)}0\phantom{2}\\16\overline{)5400}\\\end{array}
Since 5 is less than 16, use the next digit 4 from dividend 5400 and add 0 to the quotient
\begin{array}{l}\phantom{16)}0\phantom{3}\\16\overline{)5400}\\\end{array}
Use the 2^{nd} digit 4 from dividend 5400
\begin{array}{l}\phantom{16)}03\phantom{4}\\16\overline{)5400}\\\phantom{16)}\underline{\phantom{}48\phantom{99}}\\\phantom{16)9}6\\\end{array}
Find closest multiple of 16 to 54. We see that 3 \times 16 = 48 is the nearest. Now subtract 48 from 54 to get reminder 6. Add 3 to quotient.
\begin{array}{l}\phantom{16)}03\phantom{5}\\16\overline{)5400}\\\phantom{16)}\underline{\phantom{}48\phantom{99}}\\\phantom{16)9}60\\\end{array}
Use the 3^{rd} digit 0 from dividend 5400
\begin{array}{l}\phantom{16)}033\phantom{6}\\16\overline{)5400}\\\phantom{16)}\underline{\phantom{}48\phantom{99}}\\\phantom{16)9}60\\\phantom{16)}\underline{\phantom{9}48\phantom{9}}\\\phantom{16)9}12\\\end{array}
Find closest multiple of 16 to 60. We see that 3 \times 16 = 48 is the nearest. Now subtract 48 from 60 to get reminder 12. Add 3 to quotient.
\begin{array}{l}\phantom{16)}033\phantom{7}\\16\overline{)5400}\\\phantom{16)}\underline{\phantom{}48\phantom{99}}\\\phantom{16)9}60\\\phantom{16)}\underline{\phantom{9}48\phantom{9}}\\\phantom{16)9}120\\\end{array}
Use the 4^{th} digit 0 from dividend 5400
\begin{array}{l}\phantom{16)}0337\phantom{8}\\16\overline{)5400}\\\phantom{16)}\underline{\phantom{}48\phantom{99}}\\\phantom{16)9}60\\\phantom{16)}\underline{\phantom{9}48\phantom{9}}\\\phantom{16)9}120\\\phantom{16)}\underline{\phantom{9}112\phantom{}}\\\phantom{16)999}8\\\end{array}
Find closest multiple of 16 to 120. We see that 7 \times 16 = 112 is the nearest. Now subtract 112 from 120 to get reminder 8. Add 7 to quotient.
\text{Quotient: }337 \text{Reminder: }8
Since 8 is less than 16, stop the division. The reminder is 8. The topmost line 0337 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 337.