[jknz]

Dividend is 123456 and divisor is 37.

37>1, 37>12 but 37*3<=123.

Write down 3 (meant for 3000) and start again with 123456-37x3000 as the new dividend.

I wish the algorithm was taught by writing the full 3000 instead of only the digit 3; this appears to be a source of major confusion and to hide the underlying additions/multiplications.