The current does need to return to the source. The neutral wire is connected to ground for 2 reasons.
1. For safety. The ground wire is attached to the metal chassis of the device. If for some reason the chassis becomes energized the current has a low resistance path back to the source. This will trip the breaker quickly.
2. To stabilize the voltage. It gives a reference point of 0 volts, the earth.
The ground and neutral can only be connected like this in one place. Where the power enters the building – the main distribution.
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