Find closest multiple of $21$ to $85$. We see that $4 \times 21 = 84$ is the nearest. Now subtract $84$ from $85$ to get reminder $1$. Add $4$ to quotient.
Find closest multiple of $21$ to $137$. We see that $6 \times 21 = 126$ is the nearest. Now subtract $126$ from $137$ to get reminder $11$. Add $6$ to quotient.
Since $11$ is less than $21$, stop the division. The reminder is $11$. The topmost line $0406$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $406$.