This is how you create In app purchase inside your app.
1) In your developers console, go to your application and create a in app product(Name it as Ad-Free Access or what ever).(Note: to create a in app product you need to have a merchant account).
2) If you have a merchant account ready, create a InApp Product with the type of Subscription(One time or monthly or yearly) and price.
3) Once you have created the InApp product successfully, you can prompt the user to purchase an InApp product by quering a list of in app products in your app and ask user to purchase them.
Here is a link to query the InApp products:
4) Once a user purchase the product, based on the purchase status of the product, you can disable the ads in your app.