First of all, this is XOR not subtraction. Similar bits being XOR'ed always equal 0, different bits (no matter the order) in an XOR always equal 1.
0 XOR 0 = 0, 1 XOR 1 = 0, 1 XOR 0 = 1, 0 XOR 1 = 1.
Once you have grasped this firmly, it makes the math easier and behaves very similarly to traditional long division as far as having leading zero's in the dividend, put a 0 in the quotient and shift the divisor over one.
A 1 is placed above the 5th bit like in regular long division to mark the place of the last character of the Divisor.
If we follow the bits in order the first part is 11100 XOR 11011
Bit1 1 XOR 1 = 0
Bit2 1 XOR 1 = 0
Bit3 1 XOR 0 = 1
Bit4 0 XOR 1 = 1
Bit5 0 XOR 1 = 1
This gives you a remainder of 0111. Since there is a leading 0 in the dividend the divisor gets shifted over again and a 0 is placed above the 6th bit.
This process is repeated until the divisor's last bit is in line with the dividend's last bit. If there is a leading 0 in the dividend place a 0 over the last bit in the dividend, if there is not a leading 0, place a 1 and do the math.
Important to note: once the last XOR math has been calculated, the remainder is your Modulo.