Tax Prep by Deb Posted June 22, 2010 Report Share Posted June 22, 2010 I'm trying to find a formula that I know I learned back when I was in high school, but I just can't seem to get it. I need to know how to come up with a gross figure when I have a net figure and the % used to arrive at it. Here's an example: I have a deposit that was made for $184.30. This is the net figure after taking a 3% deduction from the gross, however I do not have the gross. ? - 3% = $184.30. How do I come up with ? Any help would be greatly appreciated. Deb! Quote Link to comment Share on other sites More sharing options...
Bob Hoffman Posted June 22, 2010 Report Share Posted June 22, 2010 I'm trying to find a formula that I know I learned back when I was in high school, but I just can't seem to get it. I need to know how to come up with a gross figure when I have a net figure and the % used to arrive at it. Here's an example: I have a deposit that was made for $184.30. This is the net figure after taking a 3% deduction from the gross, however I do not have the gross. ? - 3% = $184.30. How do I come up with ? Any help would be greatly appreciated. Deb! $184.30=x/.97 or 975 of what is $184.3 Quote Link to comment Share on other sites More sharing options...
jim@lwr Posted June 22, 2010 Report Share Posted June 22, 2010 I'm trying to find a formula that I know I learned back when I was in high school, but I just can't seem to get it. I need to know how to come up with a gross figure when I have a net figure and the % used to arrive at it. Here's an example: I have a deposit that was made for $184.30. This is the net figure after taking a 3% deduction from the gross, however I do not have the gross. ? - 3% = $184.30. How do I come up with ? Any help would be greatly appreciated. Deb! Divide the net figure by 97% (which is 100% - 3%) $184.30 divided by 97% = $190.00. Proof: $190.00 X 3% = $5.70; $190.00 - $5.70 = $184.30 Quote Link to comment Share on other sites More sharing options...
Bob Hoffman Posted June 22, 2010 Report Share Posted June 22, 2010 $184.30=x/.97 or 97% of what is $184.3 Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted June 22, 2010 Author Report Share Posted June 22, 2010 Thank you all sooooo much! I have to admit that looking at your figures made me feel a little dumb, but I knew it was a simple equation I just couldn't remember it. I have a new bookkeeping client that has posted several deposits incorrectly because of a service that they use that takes a 3% commission. I have the bank statements for the deposits, however I was having trouble matching these up to payments received because of the discount. This help will make my work much easier! Thanks again, Deb Quote Link to comment Share on other sites More sharing options...
jainen Posted June 23, 2010 Report Share Posted June 23, 2010 >>posted several deposits incorrectly<< Since it was wrong, you can't assume you know what the error was (if it was even an "error"). We had a post on this forum some months back where the service was saying something weird like calling the gross amount 103%, or saying you get 100% plus we get 3%, or something. Another interpretation would be to take the commission out before applying the 97%. Anything is possible. Quote Link to comment Share on other sites More sharing options...
Catherine Posted June 23, 2010 Report Share Posted June 23, 2010 Since it was wrong, you can't assume you know what the error was (if it was even an "error"). We had a post on this forum some months back where the service was saying something weird like calling the gross amount 103%, or saying you get 100% plus we get 3%, or something. Another interpretation would be to take the commission out before applying the 97%. Anything is possible. The ones that really drive me nuts are where you have a couple dozen checks deposited in several transactions -- but NO record of which checks went into which deposits, and you have to try iterations until you stumble across the correct one. That's a version of the "knapsack" problem that has (so far) defied all attempts to create an algorithm to solve it. Those clients either learn better practices or they don't stay clients for long. Although sometimes they backslide, -temporarily! Glad you got your answer, Deb! Quote Link to comment Share on other sites More sharing options...
Tax Prep by Deb Posted June 23, 2010 Author Report Share Posted June 23, 2010 The ones that really drive me nuts are where you have a couple dozen checks deposited in several transactions -- but NO record of which checks went into which deposits, and you have to try iterations until you stumble across the correct one. That's a version of the "knapsack" problem that has (so far) defied all attempts to create an algorithm to solve it. Those clients either learn better practices or they don't stay clients for long. Although sometimes they backslide, -temporarily! Glad you got your answer, Deb! This is exactly the situation I'm dealing with, and to make it worse, when the transactions didn't match the deposit my client would just adjust it by making an entry to personal draw or personal investment. So I'm trying to unravel everything including credit card transaction deposits, some discounted, some not, and they have a program called e-check that takes a 3% commission. So it's very trying to get things worked out. Deb! Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted June 23, 2010 Report Share Posted June 23, 2010 This is exactly the situation I'm dealing with, and to make it worse, when the transactions didn't match the deposit my client would just adjust it by making an entry to personal draw or personal investment. So I'm trying to unravel everything including credit card transaction deposits, some discounted, some not, and they have a program called e-check that takes a 3% commission. So it's very trying to get things worked out. Deb! Quote Link to comment Share on other sites More sharing options...
taxxcpa Posted June 23, 2010 Report Share Posted June 23, 2010 If you have a net figure after a 3% reduction, the net represents 97%. To get gross, divide by .97 184.30 ÷ .97 = 190.00 190 X 3% = 5.70 190 - 5.70 = 184.30 One way of looking at it: if you know 97%, you could divide by 97 to get 1%, then multiply by 100 to get 100% Quote Link to comment Share on other sites More sharing options...
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