By reducing the Selling price of a watch by rupees 40 a profit of 5 % turns to a loss of 5 % . The original selling price of the watch is 

Dear student,

Let the cost price of the item be Rs  x  and original selling price of the item be Rs  y.  We know that,Gain%=GainCP×1005=y-xx×100x=20y-20x20y=21xy=21x20When the selling price of the item is reduced by Rs 40,  New selling price of the item =Rs 21x20-40We know that,Loss%=LossCP×100%5=x- 21x20-40x ×100x=x- 21x20+40×20x= 20x-21x+80020×20x=20x-21x+800x=-x+800x+x=8002x=800x=8002x=400Thus, the cost price of item is Rs 400So, original SP y=21x20=2120×400=21×20=Rs 420
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