Define a function 1 which is $f_1(x)=a-1/x$ and function 2 which is $f_2(x)=1-ax $
If I set both to zero I am looking for when $x=1/a$ as the root using Newtons method.
When I do this I get two different answers however and they should surely both be the same.
for 1 I get $$x(n+1)=x(n)+x(n) (1-ax(n) )$$ and for 2 I get $$x(n+1)=x(n)+(1/a)(1-ax(n))$$
difference being the $1/a$ term.
I think you had a wrong calculation in 2. You have $$x_1=x_0-\frac {1-ax_0}{-a}=x_0+\frac {1}{a}-x_0=\frac {1}{a}. $$ So basically you converge to the desired result by one step. Think of it geometrically. You start with a point and continue all the way on your function until you reach zero.
Edit: your calculation was correct but you did not make the last step of canceling the $x_n $.