How do i transfer purchases

I am not able to get the "transfer purchases" option in my itunes account. I have the new updated version of itunes and it is much more confusing than the old update. I can't seem to find anything I want or need to find. (I personally do not like the new update).

Basically I am wanting to update my IPAD to the newer 5 version instead of my 4.2.1 version and it says I need to transfer purchases but I cant find that option anywhere. And Im not sure if doing a full backup will prevent me from losing my music, apps and photos.

Please help.

Thanks