IPad (3rd generation) battery indicator not accurate!

Yesterday I charged my 3rd generation iPad to 100% then left it charging an additional 1 and a 1/4 hours additional. The battery indicator read 100% this morning it read 95% as it wasn't off just sleeping. I then turned off the iPad using the power button on top. When I turned it on again the battery indicator read 100% again.  What is going on? To me it seems like there is a software problem in the battery charging system.

I tested using two Battery Utilities (now battery says 98%) Boost Magic says 100% and Battery Magic says 96% so here is the summary none agree.
iPad indicator 98%
Battery Magic 99%
Boost Magic 99%
Not sure which is correct or why it read 95% when I looked at it this morning then reverted to 100% after turning off and then on again.

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