This is easy as a pie: There are two parts of the artwork. One, the text which is subtracted by the shape. And two, the shape that is subtracted by the text. This is the only way I can think of to this very easily.
Get your text and shape ready. Make sure you turn the text into outlines/curves. Copy both text and shape and paste it on front or back(CTRL+C ===> CTRL+Front or CTRL+Back). Now you have two pieces of shape and text on top of each other.
Using your selection tool, select both text and shape that is visibly on top of the layer. Then hit minus front. Now here in the above image the shape is on front of the text which means it will be subtracted from the text. (Make sure to make the text into a compound path 1st before hitting minus front so the letters are grouped into one object.(CTRL+8)) This should be the result. You can see here that the outlines of the text is only up to the border of the shape.
Now we have our 1st part of the artwork done. Now hide the subtracted artwork from the layers as so it won't be moved or lock it. Now assuming you have your duplicated text and shape we will now build the shape subtracted by the text. Now what to do is bring the text IN FRONT of the shape layer (remember? minus front - because we want to subtract the text TO the shape.) Hit minus front after. Now un-hide the 1st part that we did and put some color.
Hope this is clear enough to understand! it's pretty easy to this, doable in 30 seconds!