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\begin{array}{l}\phantom{40)}\phantom{1}\\40\overline{)5400}\\\end{array}
Use the 1^{st} digit 5 from dividend 5400
\begin{array}{l}\phantom{40)}0\phantom{2}\\40\overline{)5400}\\\end{array}
Since 5 is less than 40, use the next digit 4 from dividend 5400 and add 0 to the quotient
\begin{array}{l}\phantom{40)}0\phantom{3}\\40\overline{)5400}\\\end{array}
Use the 2^{nd} digit 4 from dividend 5400
\begin{array}{l}\phantom{40)}01\phantom{4}\\40\overline{)5400}\\\phantom{40)}\underline{\phantom{}40\phantom{99}}\\\phantom{40)}14\\\end{array}
Find closest multiple of 40 to 54. We see that 1 \times 40 = 40 is the nearest. Now subtract 40 from 54 to get reminder 14. Add 1 to quotient.
\begin{array}{l}\phantom{40)}01\phantom{5}\\40\overline{)5400}\\\phantom{40)}\underline{\phantom{}40\phantom{99}}\\\phantom{40)}140\\\end{array}
Use the 3^{rd} digit 0 from dividend 5400
\begin{array}{l}\phantom{40)}013\phantom{6}\\40\overline{)5400}\\\phantom{40)}\underline{\phantom{}40\phantom{99}}\\\phantom{40)}140\\\phantom{40)}\underline{\phantom{}120\phantom{9}}\\\phantom{40)9}20\\\end{array}
Find closest multiple of 40 to 140. We see that 3 \times 40 = 120 is the nearest. Now subtract 120 from 140 to get reminder 20. Add 3 to quotient.
\begin{array}{l}\phantom{40)}013\phantom{7}\\40\overline{)5400}\\\phantom{40)}\underline{\phantom{}40\phantom{99}}\\\phantom{40)}140\\\phantom{40)}\underline{\phantom{}120\phantom{9}}\\\phantom{40)9}200\\\end{array}
Use the 4^{th} digit 0 from dividend 5400
\begin{array}{l}\phantom{40)}0135\phantom{8}\\40\overline{)5400}\\\phantom{40)}\underline{\phantom{}40\phantom{99}}\\\phantom{40)}140\\\phantom{40)}\underline{\phantom{}120\phantom{9}}\\\phantom{40)9}200\\\phantom{40)}\underline{\phantom{9}200\phantom{}}\\\phantom{40)9999}0\\\end{array}
Find closest multiple of 40 to 200. We see that 5 \times 40 = 200 is the nearest. Now subtract 200 from 200 to get reminder 0. Add 5 to quotient.
\text{Quotient: }135 \text{Reminder: }0
Since 0 is less than 40, stop the division. The reminder is 0. The topmost line 0135 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 135.