HT4527 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

You can download iTunes purchases from iTunes directly onto your computer without having to re purchase.
Downloading past purchases from the App Store, iBookstore, and iTunes Store

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