Virtual Machine Bigger than Allocation?

Hi everyone, I'm having some problems with the size of my virtual machine and wonder if anyone can help.

Basically when I created the VM I allocated 120GB to it.  When I go in Windows and look at my C drive it says 40.1GB free of 119GB

However when I look in my finder folder on my Mac under Documents > Virtual Machines, it shows one VM with a size of 210GB.

Any idea how my VM can be bigger than it's allocation and using up so much space that I need for my Mac???

Thanks

Franco